Tuesday, July 26, 2016

Verizon Buys Yahoo

Yesterday it was confirmed that Verizon will be buying Yahoo's core business for approximately $4.8 billion.  Crazy to think the company was worth $125 billion at one time.  The internet is a tough environment to compete in.  It is the new rags to riches wonderland, and also the new graveyard for former titans.

I can recall following the ticker when I first became interested in stocks, and being amazed at how fast the price was rising(1997-2000). My first email address was through Yahoo and I still use it this day. As a matter of fact I still love using their Yahoo Finance page, although I find the new layout lacking and bothersome.  I think this just serves as another reminder of how seemingly good ideas, and hot companies don't always make money for shareholders.  I have that concern for our Facebook shares as it's a risk I'm well aware of. 

Shareholders of Yahoo have not done as well as they should have.  The chart below starts in 1997.  Long term holders have still made money, although not as much as they could have.  Compared to the S&P 500 Total Return Index a lot of money was left on the table. Especially since 2009. 

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