Cincy Trader-You are definitely correct about NAS bubble valuations but what was equally weird was...simultaneous to the top in the Dow Jan and NASDAQ March 10th, 2000 was the huge undervaluation in very high quality, cash flow rich value stocks.
The market was almost giving away REITs and Home builders.
So many very high dividend, high cash flow companies like UST were going for a song. It was so bad that it drove long term well respected value fund manager Michael Steinhart out of business as well as others.
Warren Buffett was declared to be an out of touch old fossil.
Of course, anyone who bought those stocks right at the markets peak made out like a bandito.
And it turned out once again that Warren Buffetts relegation to the dustbin of performance history was..."premature"
He's been written off as an old has-been so many times.
Each time the unwashed masses do that, we know it's a buy signal for a segment of the market if not the market as a whole.
He was again written off by those who know little in the winter of 2008-2009.
They are now choking on his dust insisting that the markt has been wrong for the last year.
F
It really is amusing to witness so many people thinking they know better what to do in the market than the guy considered the greatest living investor of our time.
That's some chutzpa!
Will never forget it. Miniscule sales or earnings Internet Capital group traded for a market cap of $50 BILLION late Dec. 2009.
Even the big guys got caught up in the mania. Ford and IBM threw in the towel and bought Internet Cap at wild valuations. $tens of millions worth.
Herd behavior can be very scary.
Run alone...always.
AI
