Vitaliy Katsenelson writes a provocative post on the cloud, paranoia, and drug pricing in an Amazon vs. GE comparison.
This is a guest post by Vitaliy Katsenelson who writes the Contrarian Edge. His brother drew the lead-in image. My comments come at the end. I added article subtitles to break up the reading a bit. I also emphasized in italics, my view on what the key themes are.
His article has a simple title:
Welch vs Bezos
I am going to be in South Florida February 21-25 (Wednesday-Sunday). I will spend a few hours in Fort Lauderdale on Wednesday afternoon. I am attending a conference in South Beach Wednesday-Friday and then will spend Friday-Sunday in the Delray Beach area.
I'll try to organize reader get togethers while I'm in Florida, but I'm not sure when and where yet. (We may do a few in different locations depending on interest.) I've done these three times over the last four months in Los Angeles, Fort Lauderdale, and San Francisco, and I've really enjoyed meeting my readers. If you're interested, please drop a line to my wonderful assistant Barbara.
I created my article repository site (also known to some as a blog), ContrarianEdge.com, in 2004. When I was trying to pick its name I did a lot of soul searching. I was thinking, what's the common thread among all of my articles? I realized that it's my willingness to disagree with a popular opinion if my research leads me to a contrary conclusion. Thus Contrarian Edge.
That doesn't mean I disagree with the common opinion all the time, not at all. It's just that when I agree with one – which happens often, actually – there is little value in it: Love, hate, or indifference is already priced into the stock.
GE: Where's the Value?
A lot of times I won't have an insight into a business because I don't understand it or because it's too complex. GE is a great example today. I'm a value investor; I should be all over this stock that is making a generational low. Not at all. I looked at GE a half a dozen times over the years, and every single time I walked away without understanding the business or what it is worth.