Late March 2003 - An Update From the Digital World


Amazon.com, eBay, and Expedia posted high scores for customer satisfaction
In the latest American Consumer Satisfaction Survey, Amazon.com received the highest score ever recorded in any service industry.

We believe that customer satisfaction for Internet leaders can continue to rise
Customer satisfaction should continue to benefit as broadband usage ramps and as the online companies continue to improve their user experiences and get savvier about leveraging their technology platforms.

'Satisfied customer' = 'Satisfied investor’'?
Not necessarily, but we believe that high (and rising) customer satisfaction, when combined with compelling business models and early-stage market growth can be an especially powerful combo.

Our Internet & PC Applications Software Industry View is Attractive
We continue to believe that, at the margin, online is gaining share from offline, that this will occur for some time to come, and that this should continue to benefit the Internet leaders. So far, it appears that trends in 2003 have been strong and support our investment thesis (page 7 of the note; see link below) and our positive stance on the shares of Amazon.com and eBay.


Late March 2003 - An Update From the Digital World (11 pages)