A note from Daniel

In the late 1990s, the dot-com bubble illustrated the perils of investing based on optimism rather than solid information. Eager to capitalize on the new economy, investors started pouring money into any company associated with the concept of "dot-com." The allure was based on a widespread belief that the internet would revolutionize business, providing new economic opportunities to those previously left out, and that absolutely any investment in this space would yield high returns. This enthusiasm led to a frenzy of overvalued stock prices as the demand for internet-company shares skyrocketed, with investors often disregarding traditional financial metrics such as profit and revenue.

Daniel The Great Mental Models, Volume 4, page 192 · December 31, 2024 Save to shelf
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