`The Internet Is The Seminal Event'
Alberto W. Vilar is president of Amerindo Investment Advisors Inc. based in San Francisco, where he manages investments of $2.8 billion. For the year ending Mar. 31, he racked up a return of 78%.
ON WHETHER HIGH-TECH STOCKS ARE OVERHEATED
-- A few are, but most are not. Any corrections should be short-lived.
ON WHEN INVESTORS WILL GET TIRED OF TECH STOCKS
-- They probably won't do so anytime soon. Right now, we're in the second half of a major bull market in high-technology industries. The first half occurred between 1990 and 1994. Technology is the principal beneficiary of downsizing by both government and business.
ON HIS FAVORITE SECTORS
-- Telecom will benefit from the first deregulation bill in 60 years and from the need to reoptimize the global infrastructure for voice, data, multimedia, and video. The Internet is the seminal event in technology. It's growing 15% to 20% a month and will keep expanding rapidly for the rest of the decade. Internetworking is the fourth generation of computing in the past 40 years--following mainframes, minis, and personal computers.
ON HIGH P-E RATIOS
-- Analysts' consensus estimates never get it right. They underestimate earnings. Most people get scared off by high forward price-earnings ratios. But these companies are growing so fast that their p-e ratios don't mean very much.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.