That doesn't mean 140-character soundbites won't someday become the conversational norm, or posting photos of ourselves getting out of bed and going back will go out of style but, seriously, it's been done — by Samuel Pepys in the mid-1600s. This suggests to me that people will now bid up anything except the tried and true.
That makes me want to take a fresh look at Oracle Corporation (NYSE:ORCL), also looking down in the mouth at the moment, at Apple Inc. (AAPL), at Cisco (NASDAQ:CSCO) and at Microsoft Corporation (NASDAQ:MSFT), all "old" tech companies but not companies with old tech. With their cash flow, revenue and earnings, they can easily buy bright stars in the tech firmament and continue their growth. They may not grow at exorbitant rates but then we are paying just 12 times trailing earnings on average, and I believe that will translate to single-digit P/Es for the coming year.
In short, this changes everything. Clearly, investors would rather chase will-o-the-wisps than buy proven quality, giving us the opportunity to buy serious quality on the cheap. We are now buying IBM and ORCL and are close to buying CSCO and MSFT.
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Past performance is no guarantee of future results, rather an obvious statement but clearly too often unheeded judging by the number of investors who buy the current #1 mutual fund only to watch it plummet next month.
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