Again a cracking piece of comment on the coming second dot.com bubble.
When it comes to economics i'm a simple man (as i was told again for the umpteenth time), and so i believe that company "value", a broad term at the best of times, should mean genuine returns. I don't know how Twitter can claim a $10bn valuation when it is yet to post a profit. Livingsocial and groupon are fabulous ideas but $6bn takeover offer before the concept has even got off the ground?
I think we've been here before; Warren Buffet said something like "if you don't know how they make money, they probably aren't", CDO's and derivatives were similar, and look where that got us
http://www.guardian.co.uk/business/2011/feb/20/is-this-the-start-of-the-second-dotcom-bubble
Sent via the Guardian's iPhone application.
Get it Here
When it comes to economics i'm a simple man (as i was told again for the umpteenth time), and so i believe that company "value", a broad term at the best of times, should mean genuine returns. I don't know how Twitter can claim a $10bn valuation when it is yet to post a profit. Livingsocial and groupon are fabulous ideas but $6bn takeover offer before the concept has even got off the ground?
I think we've been here before; Warren Buffet said something like "if you don't know how they make money, they probably aren't", CDO's and derivatives were similar, and look where that got us
http://www.guardian.co.uk/business/2011/feb/20/is-this-the-start-of-the-second-dotcom-bubble
Sent via the Guardian's iPhone application.
Get it Here
Sent from my iPhone
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