Wall Street's Bush Doctrine


Q: How do you determine which companies will make it? During the dot-com craze, so many business models ended up failing.

A: We have the luxury at this point to look back at what failed and what worked. If you look at what worked, such as the eBays (EBAY ) and Amazons (AMZN ), those companies had high gross-profit margins and had business models that worked seamlessly with the Internet. So in terms of looking at the IPO, I want to have a strong sense of what the business model is. Is it sustainable, producing high-growth profit margins compared to industry peers, etc.?


We Almost Lost the Nasdaq
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus