A personal finance blog dedicated discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance.


Tuesday, February 01, 2005

Payback Time for Dot-Com Investors

(The Wall Street Journal requires a subscription)

The title says it all: "... Dot-Com Investors." Maybe the author of the article should go back and read Benjamin Graham's The Intelligent Investor. If they had read Graham's book, they would have changed the title to "...Dot-Com Speculators."

Sure, I feel for the people who bought stocks based on hyped-up analyst reports. I think that the big brokerage firms should pay for their evils. However, I also feel that personal greed played a huge role in the dot-com bubble. My dad told me about how one of his friends retired from a long career and put EVERYTHING into WorldCom stock! Everything! Now this guy is selling shoes!

The point of all this is: Have a diversified portfolio with an asset allocation plan and STICK WITH IT through thick and thin. If you have some extra money that you want to play around with, go for it. But, realize that you are gambling and you shouldn't expect any return on your gamble.

That's my rant for the day...