Do you still Yahoo?

to those of you (fred and howard) who dumped your yahoo when it precipitously dropped to $23, i’m wondering why you bought the stock in the first place. i’ve never been a market timer. i like to buy stocks that are in front of such a strong macro that the micro execution (or lack of it) wont be the major driver.  i believe that YHOO is just such a company and that’s why i added at $25 (ok, wish i had the balls to keep adding at $23). at this point i’m break even after riding a big gain and enduring a much bigger loss.

i dont understand momentum investing. it scares me because it’s based on a relative and not absolute approach. i’ve never made money buying a stock at an all time high.

i bought yahoo because it is the best pure play bet on the massive wave of ad dollars that will have to find their way onto the net. i have no idea whether their new search engine will see the light of day. what i care about is that they deliver a high quality, targeted audience to major advertisers. if they lose share to myspace and google, it still doesnt matter because the overall market is growing rapidly and will bring them with it.

i think yahoo should buy the facebook as soon as they can. but as an investor in the facebook i’m very happy to wait and watch yahoo buy it for a much higher price in another year.

7 thoughts on “Do you still Yahoo?

  1. If you have a strong poker hand, are you going to play it the same every time, or do you pay attention to how other people are playing theirs?
    Bruce Kovner – Fundamentalists who say they are not going to pay any attention to the charts are like a doctor who says he’s not going to take a patient’s temperature.

  2. There is no one perfect style and your argument of the pie growing is good news for Yahoo. I think you end up with a winner. Just a choppy road to the goal line.

  3. Momentum investing scares me too. But then I don’t have the patience for fundamental investing either. What fits me best is technical investing balanced with careful mojo balancing. When my timings are good, push hard. When it start to misfire, pull back and watch, waiting for the mojo to return.
    So I picked up YHOO at 23 then unloaded at mid 26 two weeks later. I’ll come back to YHOO when it the big waves return. Meanwhile, I’ll surfing at another beach.

  4. Mark,
    Fred highlights your points. I agree with you on the value of yahoo. yahoo is still very strong. They have the best ability to convert to new models fast. Also you’re point on the ad spend going somewhere. Yahoo is poised to take their share (they do need to understand how) but it may not be a page view model.

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