1. Exquisite Tweets from @TuurDemeester

    Crypto1ChanCollected by Crypto1Chan

    TIL Yahoo!'s stock valuation (P/E) peaked at a bonkers 1,062 times earnings. It was seen by institutions as an internet blue chip, to be held for defensive purposes. archive.fortune.com/magazines/fort…

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    TuurDemeester

    Tuur Demeester

    That's why this article is so incredible to me. History is repeating in front of our eyes. You may see it differently, but part of why ETH is considered an "ICO blue chip" is that supply is locked up by the fundraisers, pushing up price.

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    TuurDemeester

    Tuur Demeester

    Graham also makes the point that Yahoo had a low standard for hiring programmers, because it didn’t see itself as a technology company but rather a media company:

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    TuurDemeester

    Tuur Demeester

    1/ The DotCom bubble shows that the market isn't very good at valuing early stage technology. I'll use Google vs. Yahoo to illustrate.

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    TuurDemeester

    Tuur Demeester

    2/ In 1999, Google already had more search engine market share than Yahoo, yet the market valued it at a measly 0.15% that of Yahoo. ($125M vs. $80B).

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    TuurDemeester

    Tuur Demeester

    3/ And Google's market share growth wasn't a coincidence: insiders knew very well that its search engine technology was far superior than the competition. forbes.com/1999/10/04/fea…

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    TuurDemeester

    Tuur Demeester

    4/ Yahoo's approach to search in 1999 was absolutely unsustainable, as it clearly would not scale. edition.cnn.com/TECH/computing…

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    TuurDemeester

    Tuur Demeester

    5/ Still, many held on to the belief that search technology "untouched by human hands" would remain unreliable. theregister.co.uk/1999/10/08/yah…

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    TuurDemeester

    Tuur Demeester

    6/ As search engines were struggling with scaling and were all bad in different ways, experts believed that the solution was to have a multitude of engines. edition.cnn.com/TECH/computing…

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    TuurDemeester

    Tuur Demeester

    7/ So why did the market value Yahoo at a 600x higher market cap than Google? A major reason was that it was one of the few dotcoms that was printing money: in 2001 it reported $1.1B in revenue, $1.7B in cash, no debt. Google had zero revenue. annualreports.com/HostedData/Ann…

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    TuurDemeester

    Tuur Demeester

    8/ So when institutions felt FOMO and gave their managers the order to "invest in the internet", most flocked to Yahoo because of its revenues and healthy financial balance sheet. twitter.com/TuurDemeester/…

    Tuur Demeester @TuurDemeester
    TIL Yahoo!'s stock valuation (P/E) peaked at a bonkers 1,062 times earnings. It was seen by institutions as an internet blue chip, to be held for defensive purposes. archive.fortune.com/magazines/fort…

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    TuurDemeester

    Tuur Demeester

    9/ However, the market didn't appreciate that the revenue stream came maintly from massively overvalued dotcom startups spending their advertising budgets on quickly antiquating human curated portal websites. paulgraham.com/yahoo.html

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    TuurDemeester

    Tuur Demeester

    10/ The market also didn't appreciate that Yahoo had low standards for hiring programmers compared to Google & Microsoft, and that this would over time create an inferior browsing experience and dwindling market share. twitter.com/TuurDemeester/…

    Tuur Demeester @TuurDemeester
    Graham also makes the point that Yahoo had a low standard for hiring programmers, because it didn’t see itself as a technology company but rather a media company:

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    TuurDemeester

    Tuur Demeester

    11/ It took until 2004 before the market began valuing Google higher than Yahoo - five years after it was clear that Google had the superior technology! theatlas.com/charts/NknMlWd…

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    TuurDemeester

    Tuur Demeester

    @Aqua8_8_8 twitter.com/TuurDemeester/…

    Tuur Demeester @TuurDemeester
    That's why this article is so incredible to me. History is repeating in front of our eyes. You may see it differently, but part of why ETH is considered an "ICO blue chip" is that supply is locked up by the fundraisers, pushing up price.

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    TuurDemeester

    Tuur Demeester

    12/ My takeaways on tech revolution investing:
    - best engineering teams generate the most value
    - cash cow startups: continuity of earnings is highly non-obvious
    - hype & PR is meaningless
    - sometimes hard to access to best investments (google was private)

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    TuurDemeester

    Tuur Demeester

    twitter.com/TuurDemeester/…

    Tuur Demeester @TuurDemeester
    That's why this article is so incredible to me. History is repeating in front of our eyes. You may see it differently, but part of why ETH is considered an "ICO blue chip" is that supply is locked up by the fundraisers, pushing up price.

    Reply Retweet Like

    TuurDemeester

    Tuur Demeester