Author Topic: Betting on the Market 1997 Frontline Stock Market Documentary  (Read 2457 times)

Otsog

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https://www.youtube.com/watch?v=nY9iO2L0e2U

Kind of eerie watching since we know how things play out

fartface

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Re: Betting on the Market 1997 Frontline Stock Market Documentary
« Reply #1 on: March 08, 2015, 03:06:59 PM »
Watched the whole thing...very good. Love the woman who sold her stake in Microsoft to buy AMLN (whatever that was/is). Aaargghhh.

My aunt and uncle (baby boomers) with no children, sold their home in 1997 for $190,000 and moved out of state.  They "early retired" or what we later found out started leveraging themselves in the tech stock sector. They got that 190K up to 1M.

My grandfather who lived through the great depression, told them in 1999 to sell - and sell it ALL. He too was an investor, but more of the Warren Buffet type -- slow, steady, solid, dividend paying/increasing companies that had been around for decades. He TOLD THEM that what they were doing was unsustainable - to take the money, pay the taxes, and RUN!

They told him he was an old fool who was behind the times, and they knew what they were doing... 

Naturally, a few months later the tech bubble burst. Aunt and Uncle watched their 1M in investments sink to about 50K (maybe even less). My grandfather even said to me, "Can you believe they rode it all the way to the bottom?"

They had to move home, near penniless, and live in a tiny one bedroom apartment. Uncle had to return to his old job. My aunt developed mental health problems. Uggh...it was difficult to watch. Even in 1999, you could have sold your 1M in stocks, paid the taxes, invested the difference in a 6% CD and been VERY comfortable.

The documentary definitely reaffirms that slow and steady wins the race.

Indexer

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Re: Betting on the Market 1997 Frontline Stock Market Documentary
« Reply #2 on: March 08, 2015, 03:16:09 PM »
I'm keeping notes along the way.

The one lady wants to make money quick so she can pay off credit cards.  Wow and their dream house!

75% of your portfolio in iOmega!   People having their entire families dump everything in one company making zip drives!  You can see on the guy's screen its PE is 160!!!!

Then the lady is investing everything in a little tech company she doesn't even know the name of!!!!!   What?   And when she says the ticker its a healthcare company, its not even a tech stock.  [facepalm]

Wow.... people were insane.  I always wonder what the next one will be?  Valuations are a little high right now, but I feel there are 'enough' people acknowledging they are high right now to avoid the bubble of the tech years.

MooseOutFront

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Re: Betting on the Market 1997 Frontline Stock Market Documentary
« Reply #3 on: March 08, 2015, 03:47:15 PM »
interesting.  thanks for posting.

surfhb

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Re: Betting on the Market 1997 Frontline Stock Market Documentary
« Reply #4 on: March 08, 2015, 04:48:02 PM »
Thanks for posting!     I would think most people on this board weren't investing back then?  Please watch it.

Btw.....look how fat and sickly Cramer looks :)
« Last Edit: March 08, 2015, 04:51:02 PM by surfhb »

Otsog

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Re: Betting on the Market 1997 Frontline Stock Market Documentary
« Reply #5 on: March 08, 2015, 05:01:24 PM »
This aired early 1997 too and must have been mostly in 1996.  The party went on for 2-3 years after this.

RootofGood

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Re: Betting on the Market 1997 Frontline Stock Market Documentary
« Reply #6 on: March 08, 2015, 06:08:06 PM »
I learned to invest in 1999.  Or I should say I learned how make $10k then lose it all pretty damn quick, then in the early 2000's I learned about risk and asset allocation.  $1.4 million later and I'm glad I only spent $10k at the School of Hard Knocks for Investors. 

Emilyngh

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Re: Betting on the Market 1997 Frontline Stock Market Documentary
« Reply #7 on: March 08, 2015, 06:09:20 PM »
Interesting!   I started investing in about 2006, so very interesting perspective!