Jul
9
“This is obvious to us now, but could you have seen the danger of bad logic while the Bubble was growing? If you have to be really scientific about it, the answer is no. You would be like David Hume and say, “Well, this is the first time the Internet has ever become mainstream. There is no precedent for this. Therefore we cannot know what the potential is for Internet companies, and therefore we do not know whether their stock prices are rational.” If you go back to the concept that the Internet is not proprietary and use COMMON SENSE (which seems rare in frothy markets, especially if you are too scientific to risk inferring things), you would have realized the danger immediately. At least you would not be crazy enough to pay 150X revenue for this business. You might pay 10X.”
An email discussing Groupon (Part 1); First-mover advantage is definitely not permanent « Stableboy Selections
