Stableboy on Schools of Thought in Technology Investing

I am concerned that the current stock prices of many consumer technology companies appear cheap on the basis of current earnings. The problem is that current earnings for a consumer tech company are much more misleading than the current earnings of a soft drink company. iPod destroyed Sony’s profitable Walkman division in two years. iPhone destroyed digital camera sales and dumb phone sales in two years as well. Now value investors are getting involved a lot in technology names and most will get their asses handed to them. The ironic thing is that most of them avoid owning Apple (and even worse, the contrarians will short it). So they will have losses on their longs and losses on their short.

I just shake my head at the idea of buying DELL, MSFT, GOOG. At this point, Google is making its products worse! They have achieved negative marginal returns from complexity!