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> When I look across at America, you have a large number of people
> prepared to invest in new ideas, many of which will fail but some of
> which will be spectacular successes. Recently the overall rate of
> success has been quite high, I imagine, though I have no figures. So
> the rate of return on the money you as a country have saved is, I
> think, much higher than in some European nations, and Japan.
Yes, agree with this. In Europe it is extremely hard to get money for
good ideas. The American seemed to be more open for new things and
this risk-taking behaviour is certainly rewarded by the market.
However something seems to be odd. Everyone seems to have forgotten
that very few of the high-tech stocks actually make money.
Bruce keeps talking about REAL money that is made. When we are
looking at these high tech stocks then most of them destroy value.
The only reason why there is still money flowing into this industrie
is because investors hope that thy will catch one of those stocks
like microsoft or yahoo.
It is a bit like the mining industrie. Many mining companies get
money to do exploration. Most go bust but those that find something
can hundredfold their investors money.
But studies on the mining industrie have shown that the industry as a
whole delivers a return which is below of government bonds rates.
The Financial Times compared yesterday the Russian Market with Yahoo.
The whole Russian Market is only three times the size of Yahoo.
The total Russian Market was today capitalized at $ 16.313.329.241 on
the RTS system.
That reminds me of the time when NTT (Nippon Telephone) had a
market cap that was higher than the entire American Market....
I will swap a third of Russia anytime for Yahoo (as I would swap all
American stocks for a NTT)
If Bruce was such a strong believer in VALUES - especially in the
stock market - then he should have serious look at some of the bombed
out situations all over the world instead investing his money in
overvalued assets.
The current crisis in the emerging markets has created on of the most
fabulous situations.
Gerrit
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