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Stocks B / Berkshire Hathaway
|Subject: Re: OT: Question for Mungofitch||Date: 10/4/2012 9:39 PM|
|Author: TMFBreakerRob||Number: 194657 of 212367|
Hi, David. I'm not mungo nor do I ever pretend to be him... even after staying at a Holiday Inn Express.... but here is a link to a number of his Amazon comments in this thread:
This is a nice quote from him in it:
Amazon is a perpetual low-margin no-ROE business. Always has been and I assume always will be.
Outside the US there is perhaps a negative moat, inside the US a marginal one at best.
I don't see one at all, but then I don't live in the US.
It's a business based on having the best price, with no barriers to entry
and perfect price comparison ability. The sales tax scam is going away.
The appearance of "brand loyalty" comes solely from their high sales
figures which they are purchasing with their low cost of capital, 1999 style.
There is an infinite demand for stuff sold at no profit, but why bother?
I would certainly short them, but it seems they have managed to find an extremely
large number of gullible shareholders who stick with them through thick and thin.
Well, through thin and thin.
Plus, it's already priced for 20 years of results better than they have
ever managed in their best quarter ever. I put it in the "too dumb" pile.
I especially appreciate that thread since I'm one of the very, very few naysayers regarding Amazon over at the Stock Advisor Amazon board. I'm not about to short it <LOL>, but I'm not interested in buying it... and if brought up for discussion I'll argue against including it in the Phoenix <Supernova> portfolio. The ongoing stock price rise just makes no sense to me and I never get any logical responses to my arguments against Amazon as an investment.
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