At the height of the “tech boom”, in 1999, it seemed there was no end to the potential growth of tech stocks.  Headlines read, “We’re in a new economy!”  Writers told us, “The economic rules of the past no longer apply.”  I had people say, “Why would I invest in a diversified portfolio when I can make so much more in tech?  That’s crazy!”  So people concentrated more and more.

Then in March of 2000 the stock market stuttered.  Investors weren’t concerned, at first.  After all, “The new economy can’t fail.  It’s the future.”  Then the market slipped more.   People started to get nervous.  Then it slipped again.  The tech stocks, that had such a meteoric rise, suddenly cascaded down.  By the time the collapse ended some investors had been wiped out completely.  And it wasn’t uncommon for people to have lost 90% of their net worth. Read More→

“Buy value not market trends.” Sir John Templeton

During the market crash, nearly all of the people who were wiped out had bought into investment schemes promising ridiculous performance.  The investors gave their money to money managers they didn’t know, who were investing it in ways they didn’t understand, hoping to get lucky and strike it rich.  They based their decision on promises of easy wealth.  By the time they found out the promises were fake it was too late.  The performance charts were worthless.  Their portfolios devastated. Read More→