Making Money in Technology
After the Bubble, page 10
The Party Was Great, What a Hangover
The late 1990s was a great time to be involved with technology companies. Almost anyone with a
good idea could get it funded. Fortunes were made almost overnight. It was fun, exciting—and maybe we’ll
be telling our grandchildren about it.
Those who were smart enough to take money off the table did very well. Others saw a rags-to-riches-to-rags
story. One founder of an Internet media company saw his stake blossom on paper to more than $600 million
only to come back down to less than $1 million.
The problem with the kind of party that we saw in the last years of the twentieth century is, while it
may be fun while it lasted, it produces a hangover. It is likely that the hangover is proportionate in
size to the size of the party.
After the Ball Is Over...
This author makes no pretence of predicting the future direction of the technology market.
As this barticle is being written, continued rate reductions by the Federal Reserve make at least a
short term rally seem likely.
However, what is clear is that a bursting bubble of the magnitude we have seen in technology stocks
will have long-term implications. It is unrealistic to expect things to go back to the way they were.
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