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Non-Tech
Monetizing Shareholder Ignorance
An SI Board Since April 2000
Posts SubjectMarks Bans
26 8 0
Emcee:  KeepItSimple Type:  Unmoderated
Introduction Compact
In the biggest understatement of his life, Warren Buffett has cut to the heart of the modern tech bubble. It's not about limitless profits, or the hope that internet companies will change mankind, but rather:

"The ability to monetize shareholder ignorance has probably never been exceeded," said Buffett."It's as extreme as anything that happened in the 1920s. It's precautionary to us."

As insiders at most internet companies routinely sell stock to their all-to-eager public shareholders, at a rate per month greater than their companies produce in revenue per year, I think he's on to something.

Amazon insiders have sold around 4 billion shares to date, yet we al know Amazon has never earned a dime. Jeff Bezos just bought the entire top floor of an exclusive apartment building in manhattan overlooking central park. Naveen Jain of Infospace has sold roughly 500 million dollars to the "rational" public, yet his company has earned a profit of only a few tens of thousands of dollars over the last 3 years.

The list goes on and on, and the prices of silicon valley real estate go up and up, with the median home now going for more than $600,000 in the palo alto area. (That will get you 700 square feet, but you'll probably be outbid by another .com exec who just cashed in for 30 or 40 million a week previously)

It is the greatest transfer of wealth in all of human history that didn't involve military conquest.

One thing it is NOT, is a rational market.
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26Mark Maremont of the WALL STREET JOURNAL captures the essence of how investment patron_anejo_por_favor-7/24/2000
25You can forget about them big words but you ought to study this graph picture reGiordano Bruno-7/20/2000
24Monetizing shareholder ignorance? Surely not this guy!: dailynews.yahoo.com Dupatron_anejo_por_favor-7/7/2000
23aolpf.marketwatch.compatron_anejo_por_favor-7/3/2000
22 Amazon.com Says Not Running Out of Cash - Makes a Stunning Announcement. PALO KeepItSimple-6/29/2000
21 testevolegas-6/23/2000
20Message 13908650patron_anejo_por_favor-6/19/2000
19 CUC: The godfathers of monetizing shareholder ignorance!!! Message 13898999patron_anejo_por_favor-6/17/2000
18 These guys were definitely monetizing shareholder ignorance! dailynews.yahoo.cpatron_anejo_por_favor-6/15/2000
17 Wasn't this a plot line in an episode of <B>The Sopranos</b>? patron_anejo_por_favor-6/15/2000
16 Monetizing shareholder ignorance, you say? Count this dude in! biz.yahoo.compatron_anejo_por_favor-6/9/2000
15 YHOO has a direct investment plan now dsp.yahoo.stockpower.comJohn Graybill-5/26/2000
14 <b>Bear Stearns won't yank Baan financial backing </b> "IJohn Graybill-5/4/2000
13 "It's the morning after for the 17 dot-coms, both early stage start-upJohn Graybill-5/3/2000
12 Napster has been made irrelevant by gnutella. This program, which roams the NetProDeath-5/3/2000
11 <b>Napster: Show Me the Money John Graybill-5/2/2000
10 >Perhaps nothing changed after all T is around 42 now. But shareholder ignKeepItSimple-5/2/2000
9 Perhaps nothing changed after all T is around 42 now.Madharry-5/2/2000
8 >A huge move, considering that nothing had changed except the pieces >of KeepItSimple-5/2/2000
7 <b>AT&T Wireless IPO Leaves A Message About Skewed Valuations</b&gJohn Graybill-5/2/2000
6 Hey dude...What were you doing in Blodgett's Bachelor's Pad... ps. ha10K a day-5/2/2000
5 >Are you still short Rambus?? What? Oh yeah, I'm still short rambus. KeepItSimple-5/1/2000
4 Are you still short Rambus??Rich1-5/1/2000
3 Gee whiz, thanks! You know, that Joe Kernen has the nicest smile and the cutestProDeath-4/30/2000
2 >Can anyone here tell me how to jump on the next big tech rocket ship to >KeepItSimple-4/30/2000
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