online.wsj.com— Op-Ed : Run for the hills when it comes to investing in Internet companies, writes portfolio manager James Altucher. In this economy, it's back to the basics.
Jul 19, 2009View in Crawl 4
Many people are talking about our economy becoming smaller more local after the recession is finished and that there will be fewer big companies than there was before So if that model goes thought the world economy does become more local then business models will change and they may not need to be in the millions but in the thousandsGranted the internet has made the world more connected but maybe that leads to people and economies becoming more local as it is just as effortless to connect with anyone in the world as it is someone down the street
That's only speculations, nothing to do with professional analysis (not even semi-professional).Still, worth reading, we aren't paying for it, are we?!
1. Bunch of engineers manage to make something useful and money making almost by accident.2. Loads of business guys pile in and try to replicate something they know nothing about and fail predictably.3. Business guys say "There's no innovation left in the world because we failed to copy it"4. Go to step #1
This is a really great article in a way that it just kills the entire world wide web in two seconds (thats how it takes to say Internet is Dead). The truth is internet is really an information utility (of less then 1 minute to infinity, given how long & when the information is retrieved) accessed virtually providing information, knowledge & entertainment. Investing in internet would be like investing in your local library (either public or school) with unlimited content on news, entertainment, games, etc, etc. You get an idea what kind of return you will make if you invest in a public library, zilch. As a matter of fact, most libraries are created for free by big philanthropists. For someone to pay a premium (10 times book value, EPS, p/e, whatever financial jargon you are comfortable with) for an internet hot property. (socail networking site, search engine, e-mail website , book-marking) is not going to change the fundamentals of the company. People are used to seeking information for free on internet, now to pay a premium to buy the company that produces free content would be absurd as well, because the producer does not have any stable income stream, all it has is some *content* that attracts *internet traffic*. The minute someone else produces some more exciting *content* internet traffic moves away, so no competitive advantage, more so because the initial service was free.
Closed AccountJul 19, 2009
two words porta potties
Closed AccountJul 19, 2009
I think the investment their talking about is the one where any retard can throw their at any stock and it makes them rediculiously wealthy..
Closed AccountJul 20, 2009
I hate Facebook and Twitter of all my heart.
Closed AccountJul 20, 2009
f**k you douchebagdigga
sebeyJul 20, 2009
Many people are talking about our economy becoming smaller more local after the recession is finished and that there will be fewer big companies than there was before So if that model goes thought the world economy does become more local then business models will change and they may not need to be in the millions but in the thousandsGranted the internet has made the world more connected but maybe that leads to people and economies becoming more local as it is just as effortless to connect with anyone in the world as it is someone down the street
shalvak2Jul 20, 2009
That's only speculations, nothing to do with professional analysis (not even semi-professional).Still, worth reading, we aren't paying for it, are we?!
skurtJul 20, 2009
"One Word: Plastics"<a class="user" href="http://www.youtube.com/watch?v=PSxihhBzCjk">http://www.youtube.com/watch?v=PSxihhBzCjk</a>
johngalt750Jul 21, 2009
1. Bunch of engineers manage to make something useful and money making almost by accident.2. Loads of business guys pile in and try to replicate something they know nothing about and fail predictably.3. Business guys say "There's no innovation left in the world because we failed to copy it"4. Go to step #1
rockyrecklessJul 26, 2009
This is a really great article in a way that it just kills the entire world wide web in two seconds (thats how it takes to say Internet is Dead). The truth is internet is really an information utility (of less then 1 minute to infinity, given how long & when the information is retrieved) accessed virtually providing information, knowledge & entertainment. Investing in internet would be like investing in your local library (either public or school) with unlimited content on news, entertainment, games, etc, etc. You get an idea what kind of return you will make if you invest in a public library, zilch. As a matter of fact, most libraries are created for free by big philanthropists. For someone to pay a premium (10 times book value, EPS, p/e, whatever financial jargon you are comfortable with) for an internet hot property. (socail networking site, search engine, e-mail website , book-marking) is not going to change the fundamentals of the company. People are used to seeking information for free on internet, now to pay a premium to buy the company that produces free content would be absurd as well, because the producer does not have any stable income stream, all it has is some *content* that attracts *internet traffic*. The minute someone else produces some more exciting *content* internet traffic moves away, so no competitive advantage, more so because the initial service was free.