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The Rewind: bubble.com

The Memo by Howard Marks

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Is There a Future for Profitability?

Will internet and dot com companies be able to charge enough for their products to make money? People expect a lot of things for free. If you don't give it away, some other start up will. Internet firms are giving away factes, long distance phone calls, music, web browsers and even internet service itself. The marginal cost of adding another user is practically zero. It's far from clear that profits will follow. I'm sure some firms will solve it, but far from all of them.

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