Fundamentals? Nah… They Must Be Joking
from the how-to-measure-the-market dept
Could it be that investors are going back to fundamentals? This article about a panel on how to pick dot com stocks actually uses such fun terms as EBITDA and DCF. I feel like I’m back in business school finance class. There are some other good quotes in the article as well. The best comes from Clayton Christensen who has written some great articles about the technology world (can you tell I agree with him sometimes?). In response to Henry “I’m famous because I caused Amazon.com to hit 400” Blodget’s suggestion that the “trick” to investing these days is to have a diversified portfolio, Christensen responds: “Is that all we’ve learned? That it’s a crap shoot?”. The fact is, to many investors, that’s all it’s been all along. It’s just that the house had really bad odds which could be influenced and manipulated by ridiculous press releases.
