Return to the 1999 Tech Bubble? Stocks Overvalued?

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April 16 (Bloomberg) -- Warburg Pincus Senior Advisor Bill Janeway discusses his outlook for technology on Bloomberg Television’s “Bloomberg Surveillance.” (Source: Bloomberg)

Wrong about technology?

What did they get wrong versus the real technology of america?

Quakes -- quakes -- that technology drives itself.

The heroes of silicon valley are self-motivated, self-funded innovators, when in fact, if you look back, technological process that makes an economic difference proceeds by trial and error and error and error.

It is not an efficient process.

It needs funding, upstream and downstream, from sources not directly concern.

Historically, there have been two sources of funding.

First, a mission driven state.

A government that has established a political consensus as we did in the 50's and 60's. second, financial speculation.

Bubbles are everywhere.

Everywhere you have a liquid market and an asset, you will find momentum trading.

Most of the time, it is tulip bulbs and beach houses.

Every once in a while it is fundamental technology.

Olivia is great.

We dragged her out of the london school of economics.

How did your world of innovation get to eight colt of celebrity?

, so edison was a celebrity.

In britain, the giant of the railroad age had a name.

Brunel built the great railway and was an engineer and this time.

Sometimes, those transformations are driven by technology.

When they are, people like david sarnoff, the giant that created radio corporation of america -- he was a celebrity.

They're riding on the backs of many before them.

Does the generation of the zuckerberg deserve the celebrity they have -- i don't know what deserved means in that context.

They have established a position in which they are receiving a huge share of whatever value they are driving.

It is the oldest story in the book that price versus value, which do you want?


We are also talking about yahoo!. do you think marissa mayer, who has a cult of celebrity built around her, do you think the cult of celebrity that has accumulated around her masks the effect that there is not a real turnaround strategy in place?

I learned 40 years ago that corporate happiness is positive cash flow.

Corporate delight is increasing positive cash flow from operations.

Not on the cover of vogue to see how a business or leader is performing.


Has been struggling.

Were it not for alibaba, right?


Take the s&p. s&p 1999, 2000, selling it 50 times earning.

Now it is trailing earnings around 32, 23. you had the many bubbles, but they were very limited and they seem to be corrected.

I do not want to pin you down on individual stocks, but twitter and facebook?

Internet stocks are in a process of going through the same kind of transition that took place 15 years ago from concept to cash flow.

Like google, they generate a cash flow that validates the price, then you will see a more stable base.

In the meantime, they are highly volatile.

Why is the transition from concept to cash flow happening faster now than it did in 2000? tweaks it happened pretty fast between 1999 and 2000, the all-time peak of the nasdaq was just right about now, the first week of april, 2000. within 12 months, the $6 trillion of wealth that john doerr used to talk about that had been legally created, was all gone.

William janeway is with us.

Cannot say enough about this.

Bill bradley in new jersey loves

This text has been automatically generated. It may not be 100% accurate.


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