Re:My Developer friends are upset about Apple vs Amazon
by yummyfajitas on Sunday February 03, 2013 @04:02PM
(#5161135)
As I said in my parenthetical, if you are limited to investing in Amazon or it's competitors, that's true.
Most investors, however, can put their money into BP, GS or GM if AMZN and all it's competitors are tanking.
Re:My Developer friends are upset about Apple vs Amazon
by sliverstorm on Sunday February 03, 2013 @04:09PM
(#5161160)
Not if you believe in variety. Unless you believe e-retail is fundamentally doomed, if you want diversity in your investments you ought to have at least some holdings in e-retail, even if BP is outperforming Amazon.
Re:My Developer friends are upset about Apple vs Amazon
by 18pfsmt on Sunday February 03, 2013 @07:19PM
(#5161809)
In general, investing in consumer facing stocks is not desirable. They are subject to greater volatility, and more people believe they understand your business because they are consumers of your product which can lead to further distortions in share price (to the positive or negative side).
As an aside, I think looking into mining, deep water drilling, pipeline and transportation stocks would be more lucrative. As an amateur investor, I put my money where my mouth is this summer:
TCK, SWC, KMP, SDRL, HERO, CJES, JBHT, XPO
On the risky consumer side:
GDOT, LEAP
Yeah, but if you are primarily wondering where to put your money, it is relevant! If it's "Invest in Amazon" vs. "Invest in Amazon competitor", Amazon outperforming the competitor is much more important than Amazon's absolute performance.