|
|
But investors need to be extremely discriminating
Forget The Millionaire Next Door. For that matter, forget all those Motley Fool books. For many investors who got swept up in the dot-com craze, the true story of 2000 would be titled How I Turned a $25,000 Internet Portfolio into $ 1.95 in Cash. And with the Goldman Sachs Internet Index now down 67% for the year and a growing number of former high-fliers verging on bankruptcy, many investors may be content never go near another
dot-com.
But lest we forget, one old saw of investing is that the time to buy is when the blood is running down Wall Street. And many pundits believe that investors willing to dig carefully through the internet rubble—and with the stomach to ride out the inevitable ups and downs of the Net sector—will find undervalued gems yielding big payoffs in a few years.
" There are so many bargains right now," says money manager Alberto Vilar, whose
American Technology Fund in 2000 has given back roughly two-thirds of the 249% gain it racked up in 1999.
"They've thrown the baby out with the bathwater."
To be sure, investors dabbling in Net stocks must be extremely discriminating: The dot-com shakeout is far from over. Wall Street pros recommend against bottom-fishing among e-tailors will fold in January if Christmas
doesn't go well and [venture capitalists] refuse to put any more money in
them," says Alan Loewenstein, co-manager of the John Hancick Technology Fund.
(Business Week)
|
|
