1/ Thread: Bubble stock anecdotes
"Reminder: You can lose money in a good business if you overpay.
"$CSCO doubled revenues and gross profits from 2000-10.
"The stock was flat from 2000-10 with an 86% drawdown. Why? Multiple compression."
2/ DIS
MSFT
MSFT and QCOM
3/ C.P. Huntington defaults on railroad bonds and puts Hetty Green's bank in danger, thereby becoming her mortal enemy:
"The bulk of Hetty's fortune—her securities—was not exposed, but her cash deposit of $550,000 might be in jeopardy."
4/ "Some bankers had vague worries but felt pressure to get CDOs completed before it all ended....
"Charles Prince, CEO of Citigroup, the largest bank in the world, received a $13.2 million cash bonus and $25 million overall pay in 2006."
5/ Thread on the "Go-go" bubble of the 1960s:
"There was a burst of unregistered shares of highly dubious companies marked to absurd valuations. As one bubble burst, a new fad took its place.... an ever more intoxicating speculative momentum."
6/ Thread on the Nifty Fifty era (early 1970s):
"In the prevailing view, these, unlike the small high-fliers of the Go-Go era, would grow forever. They were “safe” at any price.
"By 1972, the Nifty Fifty were trading at an astronomical 80x earnings."
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