Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 8
Closing the barn door after the animals have escaped, methinks. Although it is unclear if Yahoo is cheap (it has potential, given its large user base, but it remains to be seen if the potential can be realized), the upside if Yahoo realizes its potential is very large, as was true for AOL years ago.

It is true that Yahoo is not a Rule Maker. But the Rule Maker strategy is a complete failure - and has no real hope of ever beating the market. Companies that meet the Rule Maker criteria are big established growth companies, and everyone agrees their prospects are great - and so they are priced accordingly. The returns from the ones who live up to expectations will be offset by the 20%-40% who, over 5 years, encounter difficulties and their stock prices get crushed.

You can only beat the market by doing something different from the market.
Print the post  

Announcements

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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.