Whats the biggest difference between investing in Internet stocks now compared to the late-90s IPO days?
A vast majority of the Internet companies today are profitable, very much so, and that’s a stark contrast to what we saw in the late 1990s. That doesn’t mean that valuations don’t become an issue from time to time, but inherently the businesses are solid. Tell me about some of your top holdings. We’ve been active in Chinese companies over the past four or five years. They’ve gone from being larger weightings in the portfolio to smaller. Right now they’re a bit heavier. Today we have about 17% or 18% of the portfolio allocated to various Chinese Internet companies. Long-term, they have bright prospects. Their margins across the board tend to be high, and they have very defensible businesses. A lot of U.S. companies have attempted unsuccessfully to enter the China market. What has happened in the past year or two is they’ve had to partner. eBay (EBAY) bought a company called EachNet to have an auction presence in China. Yahoo! (YHOO) made a $1 billion investment in Alibaba, a privately h
