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.