Tag: investing

04
Oct
2020
Posted in technology

Here’s How Much Investing $1,000 In The 5 Biggest Dot-Com Bubble Tech Stocks Would Be Worth Today

Despite an ongoing pandemic and the U.S. economy barely limping along, the Nasdaq is still trading more than 50% above its March lows. The surge in tech stocks in 2020 has understandably led investors to draw comparisons to the dot-com bubble in 2000.

The Nasdaq ultimately peaked at 5,048.62 on March 10, 2000. Of course, some dot-com bubble stocks have performed much better than others in the 20 years since the bubble burst.

FANG Stocks Of Dot Com Bubble: Today’s investors are very familiar with the FANG stocks, Facebook, Inc. (NASDAQ: FB), Amazon.com, Inc. (NASDAQ: AMZN), Netflix, Inc. (NASDAQ: NFLX) and Alphabet, Inc. (NASDAQ: GOOGL) (NASDAQ: GOOGL). These four stocks both led the bull market since the 2008 financial crisis and dominate today’s market with their massive market caps.

The dot-com had its own growth of FANG-esque stocks that dominated the tech sector back in 2000:

  • Microsoft Corporation (NASDAQ: MSFT) reached a dot-com bubble peak market cap of $561 billion back in March 2000.

  • Cisco Systems, Inc. (NASDAQ: CSCO) reached a peak market cap of $555.4 billion.

  • Intel Corporation (NASDAQ: INTC) peaked at a $509 billion market cap in August 2000.

  • Oracle Corporation (NYSE: ORCL) had its dot com market cap top out at $245 billion in March 2000.

  • Finally, IBM (NYSE: IBM) had a peak dot com-era market cap of $215 billion.

Altogether, these five tech stocks had a peak combined dot com market cap of more than $2.08 trillion, but that valuation certainly didn’t last for long.

See Also: 5 Ways Today’s Market Resembles The Dot-Com Bubble

Dot-Com Bubble Fallout: A year after the Nasdaq peaked in March 2000, the Nasdaq was down 59.3%. All five of these big tech stocks had taken a hit. IBM was the most resilient of the group, declining just 5.4%. Microsoft shares

02
Oct
2020
Posted in technology

Warren Buffett’s charity dinner spurred the boss of an online-trading platform to embrace value investing

Justin Sun Warren Buffett


  • Cryptocurrency entrepreneur Justin Sun paid $4.6 million for a charity dinner with Warren Buffett in January.
  • Sun hoped to convert Buffett into a Bitcoin fan, but instead one of his guests, eToro CEO Yoni Assia, embraced Buffett’s value-investing approach.
  • Assia read the definitive book on the subject written by Buffett’s mentor, hired a value-investing consultant, and became a bigger proponent of in-depth research and longer investment horizons, Bloomberg reported.
  • The boss of the social-trading platform also tweeted that value investing is a “hidden magic that reveals itself to you only after 20 years of making 15-20% and compounding it.”
  • Visit Business Insider’s homepage for more stories.

Cryptocurrency executive Justin Sun shelled out $4.6 million for a charity dinner with Warren Buffett in a vain attempt to convert the billionaire investor into a Bitcoin believer. Instead, one of his guests embraced Buffett’s signature value-investing strategy, Bloomberg reported on Friday.

After dining with the Berkshire Hathaway boss in January, eToro CEO Yoni Assia devoured “The Intelligent Investor,” the value-investing bible written by Buffett’s mentor, Benjamin Graham.

Read More: BlackRock’s investment chief breaks down why Congress passing a second round of fiscal stimulus is ‘quite serious’ for markets and the economy – and pinpoints which sectors will benefit in either scenario

The boss of the social-trading platform also recruited a value-investing consultant and told his team to spread the word about the power of in-depth research and longer investment timeframes.

“Warren Buffett’s value-investing strategy still rings true,” Assia wrote in a Twitter thread following the dinner. He described it as a “hidden magic that reveals itself to you only after 20 years of making 15-20% and compounding it.”

Assia didn’t immediately respond to a request for comment from Business Insider.

eToro, which boasts 15 million registered users and north

30
Sep
2020
Posted in technology

RingCentral’s President: We’re Investing Heavily in Video

Like some other publicly-traded companies offering cloud-based communications services, RingCentral  (RNG) – Get Report has had a pretty good year.

RingCentral, a top provider of unified communications-as-a-service (UCaaS) solutions that deliver voice, video and messaging services via cloud data centers, has seen its stock rise 63% this year. That leaves shares up more than 10-fold over the last four years.

The company’s revenue grew 32% annually during the first half of 2020 to $500.1 million, with annualized recurring revenue (ARR) up 33% at the end of June to $1.1 billion. And thanks in part to soaring remote work activity, RingCentral saw video and mobile voice minutes on its platform more than double sequentially in Q2.

I recently talked with Anand Eswaran, RingCentral’s President/COO and formerly a senior Microsoft and SAP exec. The interview followed a February discussion with RingCentral CFO Mitesh Dhruv. Here are Eswaran’s comments on several topics related to his company, slightly edited for clarity.

Where RingCentral is currently directing its R&D investments.

Eswaran: “We’re accelerating [R&D spending] across many different things….Obviously, we have our differentiated MVP (message, video, phone) platform. So we are further investing in phone to widen the moat we already have…focusing on enterprise depth and vertical use cases. So [we’re] further differentiating the phone moat we have.”

“We’re seriously investing in video. As you know, we launched RingCentral Video on April 2. And so we are investing on feature depth, on differentiation, on security on user experience.”

“We are investing our R&D resources on our strategic partnerships…with Avaya, with Alcatel-Lucent. We are releasing our co-branded products, we are increasing our international presence every quarter for all of those partnership products.”

“And then number four is the certifications and platform integrations. You know, whether it is direct routing with Microsoft Teams, so we

30
Sep
2020
Posted in technology

Silver Lake was labeled the ‘Warren Buffett of tech’ for investing billions during the pandemic. It’s emulating Buffett again with its new 25-year strategy



Warren Buffett wearing a suit and tie: Warren Buffett Getty Images


© Getty Images
Warren Buffett Getty Images

  •  Silver Lake is launching a 25-year investment strategy, The Wall Street Journal reported on Tuesday.
  • The private-equity giant is becoming even more like Warren Buffett with its longer investing timeframe.
  • Silver Lake has invested billions of dollars in Twitter, Airbnb, Expedia, and other businesses during the pandemic, similar to how Buffett handed cash to the likes of Goldman Sachs and General Electric during the 2008 financial crisis.
  • The firm has also emulated Buffett by lending money at lofty interest rates and securing equity warrants.
  • Visit Business Insider’s homepage for more stories.

Silver Lake pulled from Warren Buffett’s playbook when it injected cash into ailing companies during the coronavirus crash this year. The private-equity giant is emulating the famed investor once again with the launch of a 25-year investment strategy.

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Abu Dhabi’s sovereign-wealth fund, Mubadala, is acquiring a sub-5% stake in Silver Lake and contributing $2 billion to the new fund, The Wall Street Journal reported, citing people familiar with the matter.

Silver Lake, which manages more than $60 billion in total assets, has a quarter of a century to employ Mubadala’s cash and realize any gains — more than double the usual 10-year timeframe for private-equity funds, The Journal said.

Read More: UBS says the chances of a Democratic sweep have risen to 50% as Trump and Biden square off in their first debate. These 9 assets will help investors profit if a blue wave comes crashing in.

Buffett, the billionaire CEO of Berkshire Hathaway, has championed long-term investing for decades and held stocks such as Coca-Cola for more than 30 years. “Our favorite holding period is forever,” Buffett wrote in his 1988 shareholder letter.

Silver Lake hasn’t just adopted a Buffett-esque investment horizon, it has also taken up his mantle