Message Font: Serif | Sans-Serif
No. of Recommendations: 0
TMF Oldironsides makes a good case for why Yahoo is not going to die, and may in fact thrive.

I would tend to agree with his overall analysis of Yahoo's prospects, however, the analysis ignores one crucial point: Opportunity Cost of Capital. I don't have to remind this enlightened community that a holding of Yahoo (or any other) stock should be considered as money, not shares. In Philip Fisher's words, the time to sell ('almost never') is 'when there is a better buying opportunity'.

So the key question to ask is, if I had a 100 dollars to invest today, would I invest in Yahoo, or are there better opportunities out there? How about Cisco, another company that is not going to die out, and in fact may come out of the current situation with huge marketshare gains at the expense of weaker rivals?

If Oldironsides thinks that Yahoo is the BEST investment opportunity out there today, then by all means, he MUST hold on to the stock.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.