Yahoo Fundamentals Deteriorating - Collins Stewart [View article]
YHOO is another stock that I would never buy because of my investing thesis of never buying a company with an inferior product. YHOO's search is inferior to GOOG, has been for years, and there is no reason to believe it will ever be improved if 10 years and hundreds of millions of dollars haven't done it yet.
MSFT, F, and GM are other examples. Each sells an inferior product for too much money (too much, even if at a loss) while their loss of market share to superior competitors accelerates. Meanwhile, years, or decades, have passed and the fundamental problems have not been remedied.
Even if there are no obvious competitors yet, companies with crappy products are perfect bait for the sudden emergence of a GOOG that will destroy them.
The moral of the story: know your company's products.
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YHOO is another stock that I would never buy because of my investing thesis of never buying a company with an inferior product. YHOO's search is inferior to GOOG, has been for years, and there is no reason to believe it will ever be improved if 10 years and hundreds of millions of dollars haven't done it yet.
Sep 26 16:10 pm
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All Comments by Chris B »Yahoo Fundamentals Deteriorating - Collins Stewart [View article]
MSFT, F, and GM are other examples. Each sells an inferior product for too much money (too much, even if at a loss) while their loss of market share to superior competitors accelerates. Meanwhile, years, or decades, have passed and the fundamental problems have not been remedied.
Even if there are no obvious competitors yet, companies with crappy products are perfect bait for the sudden emergence of a GOOG that will destroy them.
The moral of the story: know your company's products.