1/ Seeing this chart of NASDAQ 100 from 2000-02 made me think about a time in my life when we were in triage mode trying to keep businesses from dying. Some people were trading then, but our focus was on actual businesses running short of runway (eg cash).ritholtz.com/2022/01/living… 
2/ The funding environment from 2000 to 2002 was in a state where assets of a business would sometimes not produce the ability to generate enough cash to get though a valley of death. Just one example was Nextel as this chart illustrates. I hope you never see a time like this.
3/ Control of XO Communications was up for grabs (if you had cash, which was rare at that time, you could gain control of companies in Chapter 11). We had to decide whether to try to gain control of XO or double down on Nextel. We correctly chose Nextel and avoided that battle.
4/ Confidence was required to double down on Nextel when it was trading for "2 and change" at the bottom in 2001. If you did that successfully the current repricing of some stocks looks like a wobble. You sleep better now than when telecoms crash produced a nearly full graveyard.
5/ Some people sold near the bottom between 2000 and 2001 and were nearly wiped out. Others sold at the bottom again in 2008. One doctor I know who was hammered 2X in this way has never owned anything but a CD since 2009. He says he can't take another near wipe out a third time.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
