Tuesday, October 7, 2008

Making a List

I know the world is falling apart in finance but in a perverse way, I think this is really positive for our future. Risk is being repriced so that there are consequences for bad decisions. The Government is learning you just can't keep throwing liquidity (interest rate cuts, bailouts, etc) at problems. There will need to be structural change. Policies are going to matter now. I think this is incredibly bullish for the future and it's making me really optimistic. Today, people who have cash can start to buy into the future at very attractive prices.

I was starting to feel this way and then came into work today and saw Fred Wilson's post today about looking forward. He covers a bunch of great companies that are getting relatively cheap, have a lot of cash and should be able to weather the storm. Can you imagine how many cheap startups Microsoft and Google will be able to pick up? They'll have their pick of the litter and these acquisitions will make them stronger. They'll also be able to issue slugs of stock options at far more attractive prices, thereby giving their employees a lot of upside.

I think this time period is going to be really bullish for a few companies and I've started making my list: Google, Microsoft, Enernoc (smaller company but interesting). What other companies should I be thinking about buying?