Invest sucessfully in the companies that will prevail through thechnology booms and busts -- with indispensable advice from the world's most trusted business publication, The Wall Street Journal.
There's no doubt the Internet has changed the way we live, the way we work, and the way we invest in the new millennium. But while many investors made fortunes investing in technology companies while the Intenet stock bubble was inflating, countess others lost their shirts when the bubble finally popped.
Now, Stephen E. Frank -- a veteran of The Wall Street Journal and CNBC -- explains what we need to know about investing in Intenet and technology stocks in today's postbubble economy. In Networth, Frank lays out a straightforward framework for understanding how the Intenet works, now different business models stackup, and how to think about technology stacks as part of a broader investment portfolio. He weighs in on the potential risks and rewards of each Internet subsector, and profiles a slew of dot-com companies, from obvious candidates like Amazon.com to transformed titans of the old economy like United Parcel Service.
While most investors avoid Internet stocks like the plague, Wall Street Journal and CNBC correspondent Stephen Frank thinks the sector is worth a second look. In NetWorth, Frank sorts through the wreckage of the dot-com crash and offers a framework by which savvy investors can assess who the winners will be in the next few years. Frank's basic premise: the Internet is here to stay, and that every company will in some way soon be an Internet company. He begins the book with an insightful chapter on the merger of AOL and Time Warner, calling the new company "the paradigm of the new economy." Frank then examines all the categories of Internet stocks and the companies within, including consumer (Amazon.com, Yahoo!, E-Trade), business to business (Ariba, I2, DoubleClick), and infrastructure companies (Akamai, Oracle, VeriSign). In all, NetWorth is a useful overview of this downtrodden sector that should interest anyone with a long investing horizon and a contrarian point of view.
--Harry C. Edwar
From Publishers Weekly
"The demise of so many dot-coms means a bit counterintuitively that for everyone who sat out the market's gravity-defying rise, the time to get involved may finally have arrived," declares Frank, the on-air Internet correspondent for the Wall Street Journal and CNBC. In guiding readers to solid ground in today's so-called new economy, he avoids rehashing some notable dot-com investing disasters, such as theStreet.com and ValueAmerica. Instead, Frank refreshingly advises readers to step back and take a broader look at how the Internet has transformed the economy and will continue to do so. With this big-picture perspective, he maintains, investors can safely diversify and take advantage of Internet-related businesses that are still booming. According to Frank, this means looking at large, diversified companies, rooted firmly in both the old and new economies, such as AOL Time Warner; consumer-oriented companies, like Yahoo! and eBay; B2B firms and other, more traditional companies that service the Internet economy, such as Gateway, Motorola and UPS. Given the dramatic downturn of the stock market this spring, Frank's well-reasoned approach is both cautious and optimistic. He offers very credible explanations for both the Internet's explosive growth as well as the poor stock performance of many companies. His advice "figure out your objectives... use common sense... do your homework" isn't new, but Frank's expertise in making the elusive nuances of investing is clear: not only are his suggestions sound, they can be readily understood by even novice investors.
From Library Journal
Everybody and his kid brother are trying to make money on Internet stocks. Fortunes are being generated by companies that started on a kitchen table a few years earlier; however, many dot-coms have ceased to exist, and there is great financial risk in the boom and bust of net stocks. Web-oriented companies can make profits in a variety of ways, including selling to businesses or consumers, consulting, or producing equipment. Frank gives sound advice on picking the winners; his professional narration adds to the content. This audiobook is thorough and insightful; recommended for public libraries.
Mark Guyer, Stark Cty. Dist. Lib., Canton, OH
The recent failure of so many dot-com companies means either of two things: it presages a precipitous financial disaster, or it presents an exceptional investment opportunity. Frank writes a column, "Playing the Net," for the Wall Street Journal and is a CNBC commentator. He breaks down Internet-related companies into sectors to analyze investment potential. First, though, he makes the case for including Internet stocks in an investment portfolio. He argues that the Internet is "here to stay," that it is "for real," and that it is not too late to become an Internet investor. He provides an in-depth analysis of AOL Time Warner, suggesting that it "stands as a paradigm of the new kind of corporation the Internet makes possible." Frank then looks at consumer-oriented Internet companies, business-to-business companies, and infrastructure enterprises. He also identifies other companies that benefit from the Internet, such as chip makers, telecom providers, and package delivery services; and he identifies Internet mutual funds and start-up incubators as alternative investment possibilities.