1/ Thread: Bubble stock anecdotes

"Reminder: You can lose money in a good business if you overpay.

"$CSCO doubled revenues and gross profits from 2000-10.

"The stock was flat from 2000-10 with an 86% drawdown. Why? Multiple compression."

https://twitter.com/ValueStockGeek/status/1312376768846794752
2/ DIS
https://twitter.com/adequateryan/status/1312424085700390913

MSFT
https://twitter.com/stevehaberstroh/status/1312379593400123395

MSFT and QCOM https://twitter.com/beursrebel/status/1312380272567111682
3/ C.P. Huntington defaults on railroad bonds and puts Hetty Green's bank in danger, thereby becoming her mortal enemy:

"The bulk of Hetty's fortune—her securities—was not exposed, but her cash deposit of $550,000 might be in jeopardy." https://twitter.com/ReformedTrader/status/1288623281323380737
4/ "Some bankers had vague worries but felt pressure to get CDOs completed before it all ended....

"Charles Prince, CEO of Citigroup, the largest bank in the world, received a $13.2 million cash bonus and $25 million overall pay in 2006." https://twitter.com/ReformedTrader/status/1268616959463010306
5/ Thread on the "Go-go" bubble of the 1960s:

"There was a burst of unregistered shares of highly dubious companies marked to absurd valuations. As one bubble burst, a new fad took its place.... an ever more intoxicating speculative momentum." https://twitter.com/ReformedTrader/status/1312453136368328704
6/ Thread on the Nifty Fifty era (early 1970s):

"In the prevailing view, these, unlike the small high-fliers of the Go-Go era, would grow forever. They were “safe” at any price.

"By 1972, the Nifty Fifty were trading at an astronomical 80x earnings." https://twitter.com/ReformedTrader/status/1312475214177955841
7/ Thread on the 1980s reinsurance bubble: https://twitter.com/ReformedTrader/status/1313898513974009856
8/ Thread on the junk bond and takeover boom of the 1980s:
https://twitter.com/ReformedTrader/status/1313589297245634560

Thread on the junk bond and real estate bubble popping in the early 1990s: https://twitter.com/ReformedTrader/status/1315669625011486722
9/ Tech boom survivorship bias: https://twitter.com/ValueStockGeek/status/1316710418048602115
10/ Thread on Orange Country's use of derivatives: https://twitter.com/ReformedTrader/status/1317860972472586241
11/ 2020: https://twitter.com/ReformedTrader/status/1270512432138448897
12/ Thread on the M&A bubble that led to the Panic of 1907: https://twitter.com/ReformedTrader/status/1289724349172211713
13/ The 1980s real estate bubble in Japan: https://twitter.com/ReformedTrader/status/1307413356442050560
14/ On the Beanie Baby bubble of the 1990s: https://twitter.com/ReformedTrader/status/1030722036274933761
15/ The effect of the 1960s bubble on Alfred Winslow Jones's hedge fund: https://twitter.com/ReformedTrader/status/1321893915344007168
16/ On the European currency crises of 1992, the Quantum fund, and OTM currency options being sold:

From Inventing Money
https://twitter.com/ReformedTrader/status/1281777623228506112

From More Money than God https://twitter.com/ReformedTrader/status/1323319889487015936
17/ On the late 1990s tech bubble's effect on hedge funds (thread): https://twitter.com/ReformedTrader/status/1324035361312395265
18/ Thread on Amaranth:

"When Hunter unloaded, the glorious results of April were followed by horrifying losses. Amaranth was down by nearly four times more than the risk department had deemed possible." https://twitter.com/ReformedTrader/status/1324048869798240256
19/ Great thread on the way investors thought (and the substantial agency problems) in the midst of the 1999 tech bubble:

"You either participate in this mania, or you go out of business. It's a matter of self-preservation." https://twitter.com/NeckarValue/status/1346115265034129412
20/ "Tesla's market cap, >$600 billion, amounts to >$1.25 million/car sold/year versus $9,000/car for GM. What has 1929 got to equal that?

"Any of these tidbits might be dismissed as isolated cases (they are not), but big-picture metrics look even worse." https://twitter.com/ReformedTrader/status/1347723590305681409
21/ Interesting thread on Amazon's near-failure and subsequent success: https://twitter.com/DanRose999/status/1347677573900242944
22/ Lessons from the 1999 bubble (thread): https://twitter.com/corry_wang/status/1345192546297933824
23/ Great thread on the 1980s Japan bubble and its aftermath: https://twitter.com/RudyHavenstein/status/887462151606030336
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