“The Future for Investors” by Jeremy Siegel. Kevin Kranzler Lisa Lajeunesse Ray Ng John Schmidt. Agenda. Who is Jeremy Siegel? Part 1: “The Growth Trap” Part 2: “Overvaluing the Very New” Part 3: “Sources of Shareholder Value” Part 4: “The Age Wave” Part 5: “Portfolio Strategies”
Do not be seduced by that hot new company or investors
Overwhelming demand for stocks overvalues those stocks which lowers the return for investors
“Good morning, Mr. Siegel. I hope you’re happy. You cost me $14,000.00 for no reason! What do you have against this mammoth company? Are you jealous because you didn’t get in on the run-up? Did you want to buy in cheaper? You have no business making decisions like this. After all, you’re still a child when it comes to Internet knowledge.
“You’re a preschooler in diapers when it comes to recognizing opportunities. By the way, when was the last time you got laid? You’re a party pooper. Thanks a lot, jerk. I suggest you go to the streetadvisor.com to read about why you’re so wrong idiot. Do you even know how to get a Web site, you child?”
Figure 6.2 Annualized Returns on Yearly IPO Portfolios Minus Returns on Small Stock Index, Returns Measured Through December 31, 2003