Lessons Learned From Dot Coms

from the why-people-were-stupid dept

So, mhh5 posted the Wall Street Journal’s take on myths of the dot com era yesterday, and I guess Fortune couldn’t be outdone. Today they have their set of lessons learned. How many other people, as they read through these, are saying “duh!”? Most of us knew this all along. However, as everyone was making a ton of money no one seems to care. I still claim that the “largest amount of legal wealth creation in history” was a huge “pump-and-dump scam”, which is now adversely effecting even the good companies. Perhaps the SEC should start investigating some VCs and investment banks for fraud.


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Comments on “Lessons Learned From Dot Coms”

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3 Comments
mhh5 says:

When will we realize, it's all in our heads?

Markets go up and down on ‘herd mentality’ thinking. What is the true value of anything on the market? It’s “easy” to scam penny stocks b/c all you need is people to believe. And it’s only illegal when a boom is based on outright lies. The dot com boom was based on statements that just couldn’t be proven outright false at the time. We can’t even “prove” some of the business models are outright bad even now.

That being said, we’re going to be seeing more articles outlining the 20/20 hindsight of VCs. Will we learn from these mistakes? Probably not. The “next big thing” is just around the corner.

Why do we fall for these mistakes? B/c every situation seems slightly different. And we want to believe… The thing we want to avoid is collective belief in depression!

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