The Dot-Com Bubble - Wall Street History

[@PBoyle]

Thanks to our growing list of Patreon Sponsors and Channel Members for supporting the channel. www.patreon.com/PatrickBoyleOnFinance Marc De Mesel, Annie Chen, Nate Stapleton,Timothy Baird,Cab1260, WIlam, Robertas, Hernan Merino, Random Encounter, Nieuwsbrief Ikwil, Bee Positive Consulting, hyunjung Kim, John Cadena, Ian Tracey, A Smith, Callum McLean, Oscar, Simon Pena, Alexander E F, Cyrus Yari, Ed, Pavle Obradovic, Erik Van Ekelenburg, David O'Connor, Zak Patterson, Ki Ryu Chan, Pjotr Bekkering, Drew, Ivaylo Kunev, Alex, Robert W Proudfoot, EatEmAll, Michael Boensel, pooh shmoo, Robert Muller, Andre Michel, Ivan Iliev, Gopaljee Atulya, Milan Tomic, Mark Hooker, Artem Vasenin, P H, Mathews Sebonego, Sebastian, Michal Lacko, David Urdenata, Juan Valdez, Bruce Roberts, Chad Norman, Bruce Roberts, Shamikh Rana, Friday Guy, Marc De Mesel, Augusto Ramos, Soy Boomer Doomer, Bob Slartabartfast, Robert Feiler, Camil Dbouk, Erik Montesinos, Matthew Loos, Az Indragiri, Aman Bali, Lautaro Parada, Pratap, Deborah Joseph, Robin Sung, VicMR, Yann M and Kurt Johnston.

[@fnfn9199]

I love your content, ima be a hedge fund manager one day

[@petersuvara]

Great content might want to invest in some flood lighting.

[@black13078]

Hey Patrick, what is that watch you are wearing?

[@Kid_Named_Finger_]

Hey that's me! Thanks for the great content.

[@floridaray3380]

Trying to learn from the past for up and coming economic crisis in America. Your videos have come a long way.

[@alhollywood6486]

I was a floor trader at the CBOE during this time, it was madness. Everything went up, everyone got rich....Until they didn't. Paper millionaires never took anything off the table. The echoes today are obvious.

[@johnl.7754]

Well one difference is that the fed is still actively pushing the market up.

[@andrewyork3869]

@@JasonJason2020 some people learn from mistakes others don't. I strongly suspect that there will be a wave of mass failures in the next economic downturn. Was it JCP that returned 99% losses on there bonds? Regardless we can hope that this does not become a new normal.

[@alhollywood6486]

@@JasonJason2020 he also showed a picture of the fake Nikola truck at the same time he said that. It was a joke.

[@kingkang6877]

I was in college during that time. What is your gut feeling on when things will pop? I'm getting the feeling of this time last year when I was thinkng "what in the world would make this market fall since it's been going up for years?" (Then COVID happened)

[@diegorivera6500]

@@JasonJason2020 have you watched the video mate? It says that at the end.

[@iammattc1]

I briefly worked with someone who had funded his friend's start up in exchange for stock. It kept going up and up, and it reached £20 million at one point. He went to the owner of the company he worked at and asked what he should do. The owner told him to sell half and keep half, that way he'd be rich, and if the stock kept going up he wouldn't lose out. He didn't. He looked at as he'd only make half as much more money when the stock went up further Then the stock dropped. When his stock was worth £18 million, he thought about selling it all, but looked at it as losing £2 million instead of gaining £18 million In the end he didn't even get his initial investment back.

[@jullietmburu9672]

Someone gave me the same advice, but for my heart 💖 I'm Investing wisely now

[@FogelsChannel]

@juliet then don't invest your heart with iammattc's friend, he's broke.

[@jullietmburu9672]

@@FogelsChannel 😂😂

[@Caryll_byrgenwerth-scholar]

Ahh, the good old "not yet... welp it's too late now".

[@ultraboombean]

Dang man... yep overshoot the sun.

[@AllenZee]

This is literally 6-9 months of solid research crammed into 23 minutes. Well done as always Patrick. Thank you for doing this public service. Keep up the great work brotha !!!!

[@rabidbigdog]

Hmmmm. Pop off and search for Frontline's Dot Con docu.

[@David.Marquez]

A lot of this retelling of the dot-com bubble reminds me of the phrase "History doesn't repeat itself, but it rhymes". Awesome video as always!

[@steamknife1]

That's a good phrase.

[@lampshade5449]

Would you agree that history is going to rhyme again with EVs market this time?

[@skylinecams7851]

@@lampshade5449 Yes, a lot of parallels with 99, people hyping up stocks and jumping into anything because they think everybody else is getting rich, a lot of new companies going public via SPACS and seeing huge valuations. I recently read on a forum re the ev bubble "don't give me any bs about PE this isn't the 1950s, its impossible for these stocks to go down teslas going to 5000 this year and that isn't even a stretch" people seem to be completely detached from reality.

[@NoName-to5xl]

I think it's repeating , crypto and defi have minimal differences from this story.

[@stephenchurch1784]

"But this time it's different" ™

[@neonglowmusic]

Legendary rock star William Shatner. I love how you speak with such unironic authority.

[@kalleoakoskinen]

And "also a Star Trek actor" thrown in like an afterthought :D

[@richardhp77]

That joke was delivered so dead-pan it took me about 20s for it to register.

[@RED-jg6mt]

lol

[@Radean1]

Deadpan delivery - a hallmark of British humor!

[@JustChillingOnTattoine]

Savage man, just savage 🤣

[@erichkitzmueller]

I remember when back then, having a low cash burn rate (or even making profit) was considered bad, because it meant that management did not pursue growth aggresively enough.

[@kingbonezai4925]

Still the method of start ups today…

[@Boredoutofmywits]

@@kingbonezai4925 true that. There is good growth and bad growth.

[@markomak1]

Sounds familiar ...

[@picketf]

I worked in risk evaluation for big capital. When interest rates were near zero and then turned negative wherever you parked your money was fine as long as it wasn't generating immediate return. Nobody trusted short term yields and if your investment strategy included it they always wanted a short horizon before switching back to low interest long term contracts. When interest rates started to pick up again the long term strategy barely managed to follow short term yields and write offs or contract breaches incurring heavy fines were employed to return liquidity and profitability.

[@specialc]

That e-trade commercial at the end was a real tearjerker.

[@mellusk9194]

The Y2K Panic also ran parallel to the DotCom bubble, which also funneled a lot of money into technology upgrades across many different industries.

[@UP-To-The-Time]

This is truly the best financial education channel....

[@linnovate360]

Agreed. I feel that Patrick would be an excellent educator at a university

[@trapOrdoom]

One of the best, check out Steve Saretsky for some Canadian RE.

[@mangos2888]

I turned 18 in 1999 and this is the first video to make me feel grateful that I, at best a retail investor at the time, missed out on the boom & bust of the tech bubble. Interesting story. We still can't get rid of those e-trade ads during the superbowl! 😂

[@gumerzambrano]

So glad you did the Collab with Coffeezilla!

[@likemysnopp]

me too!

[@taurentsiuz9206]

Same, as i got to know him from there and he has grown massively in the last months, which he defenetly deserves

[@JuancoPRoFlow]

Stfu

[@trapOrdoom]

Same, I’m here from CFZ.

[@GloriosoMD]

@@niobull2206 wow, thats amazing, how much was your initial capital? 5 billion?

[@samuelmitchell5937]

Glad to know that there are others who view the hyperloop as a "pipedream."

[@seneca983]

It's a literal pipedream even if it happens to turn out to be viable. :)

[@samuelmitchell5937]

@@seneca983 Now, it's no where near viable, vaporware is the apt description.

[@seneca983]

@@samuelmitchell5937 I'm also pretty pessimistic about its viability.

[@seneca983]

@@justcows7772 Potentially a vactrain could be a lot faster than those while being more energy-efficient than a plane. However, it also comes with a host of challenges that can easily render it technically or at least economically unviable.

[@hypothalapotamus5293]

The hyperloop saved me 15 minutes the other day. I was watching a city council debate on youtube, trying to be a good citizen and figuring out who to vote for. Someone mentioned it as a priority. I skipped past that person for the rest of the video.

[@katlynklassen809]

I really appreciate you man. I can't handle learning from people who are not of the absolute highest capacity in a field and you truly are.

[@WillN2Go1]

Good video. I hope all the Millennials watch it (not because they're doing anything wrong, it's just really important recent history.) When I invested in Apple, Google and Amazon in 2008 more than a few people were either worried for me or thought I was taking a huge risk. The Dot-Com Crash 8 years on was still a widespread popular concern. When the 2008 crash hit, I had a moment, then I shrugged (a bit nervously) remembering what Warren Buffett went through with American Express early in his career. A good company is a good company.

[@volbla]

I think everyone needs a thorough lesson in speculation bubbles because many of us _are_ still doing things wrong. People still get sucked into investing in things with no tangible value, like cryptocurrencies and nfts, purely because of marketing hype. It's even worse now because many of these aren't even products or services that might feasibly become profitable in the future, but actually straight up scams. If everyone was taught in school that tulips don't serve any vital function in society and investing in them will inevitably just destroy all your savings, maybe we could save some people from wasting all their money.

[@anejsmolic1085]

You hit it on the nail with the NIKOLA example. Genius.

[@tulagirl3173]

Amazing video patrick, thank you!

[@PBoyle]

Glad you enjoyed it!

[@itbeat7899]

I will come back to watch this video many times more. Thank you for your wonderful work summing up the important portion of US economic history. History doesn't repeat itself, but there is a pattern to be learned.

[@mpcolucci12]

Thanks!

[@joshuadias2468]

The Dot Com era is so similar to the Crypto space. Back then Warren Buffet was laughed at, "As an old fool who doesn't understand Technology". Now again people laugh at him, "As an old fool who doesn't understand Technology". The main takeaway. The internet lasted and so will crypto currencies/blockchain. The question is "Which ones?" and "How much are you paying for them?"

[@varshard0]

Yeah, Microsoft last, but it took so long to go back to its ath price.

[@Theo-dj7vs]

Whatever.. money is made in bubbles...buffet could not function there.. did he buy into mobile phones? No. He makes money in insurance

[@Theo-dj7vs]

Not even remotely. You have adopted blockchain tech...its in your hand...wake up...jealous much

[@joshuadias2468]

@@Theo-dj7vs What are you talking about? Jealous?

[@Biskawow]

With proof of stake crypto could work. You get returns like from dividends and you eliminate the insane energy consumption problem crypto mining has. I dont know much about the crypto technology but afaik ethereum promises exacly that so we will see.

[@ThioJoe]

Very nice explanation, appreciate ya 👍

[@definitelyannpc2038]

Dude.... I've been following you since like 2012!

[@spinLOL533]

@@definitelyannpc2038 same, I ended up taping two Ethernet cables together

[@ButterNutter37]

Mr. Boyle, I appreciate your videos tremendously! Your ability to smoothly explain complex topics is, in my personal opinion, unmatched on KZbin! This is my new favorite channel by a mile. Thank you!

[@tiagosawyer]

Great vídeo Patrick. Just one small thing, Elon wasn't the founder of PayPal. He joined PayPal via merger with Xpay. A common error that everyone makes. Cheers.

[@BeastOfMetal1989]

Funny, I always figured he would've called it PayX...

[@Global-yt]

@@BeastOfMetal1989 XX

[@David-ud9ju]

He also wasn't the founder of Tesla, which lots of people get wrong as well.

[@BigJohn6060]

As a Lucent technologies founder's grant IPO recipient, I watched as it's stock fell from mid-$80's down to 50 cents range. I was fortunate that I took a buy-out in December of 1999 and was able to exercise my options in the mid-$50 range, still losing thousands, but not nearly as much as my former co-workers, some of whom were foolish enough to put 100% of their 401Ks into Lucent stock. It was heart-breaking to see the damage done to small retail investors and employees.

[@Dwightstjohn-fo8ki]

being "all in" is an unnecessary risk for most, especially those without multiple income streams. I'm walking distance to THREE bitcoin mines, buildings dedicated completely to this game. But the owners have deep pockets locally. own cash flow businesses, have their house paid off, and other buildings. Constant posting by someone that's a KID and being given their college fund by Aunt Edna, only to put it ALL into crypto. or some rug pull off some rock star, just amazes me. Risk what you can afford to lose.

[@Boredoutofmywits]

Yo didn't lose anything. You cannot lose what you didn't have in the first place.

[@TheSquirrelSam]

Great video Patrick. I was expecting you to refer to Robert Schiller who published his book "Irrational Exhurbernece" in March 2000 the exact same month as the NASDAQ peaked before the fall started. His well argued and fact based explanation of the reasons for the boom helped me a lot at the time and since then. Your video on the concept by Soros of Reflexivity has also been very valuable.

[@CleverSmart123]

I will watch it later, but I’m already looking forward to it.

[@mr.marketoriginal3808]

Dear Patrick, thank you for this video again. It's insane the similarities between that moment and the current one!

[@peterjordan5947]

I'm loving this guy's voice, and the content is fantastic. The videos are addictive, and given the incredibly short attention span I have, I'm flabbergasted that I'm on my third Patrick Boyle video and still loving it

[@netrabhatta]

You are my favorite KZbinr Sir! Real content real education Thank you.

[@terig5584]

I’ve known about the dotcom bubble being crazy, but that stat about the 199th company being valued at 450 billion was so insane that I had to repeat that section three times to make sure he was actually saying “billion”.

[@cyboss-3562]

and that's billions in 90s money value

[@FURQMEDIA]

Patrick- I just wanted to take the time to say thank you for your time creating these videos. I’m working on CFA now and your stats for the trading floor book is very helpful. Can you make a video about overnight index swap trading? The way you explained variance swaps in your videos was super helpful and hoping you can continue to explain these more complex products.

[@likemysnopp]

I love these videos because I learn so much from them compared to youtubers who arent actual economics

[@danno633]

Really loving your channel man, between you and economics explained, its like free university lectures.

[@poohshmoo9892]

Man, I love each and every video. Excellent job Patrick. Thank you

[@bmejia220]

Patrick, your quality of content delivery is exceptional. Your my new favorite KZbin channel. Thanks for sharing quality.

[@HoaxManTheOne]

idk what it is but you feel much more relaxed in this video. watched a lot of your videos, very well researched and educational. maybe its the lighting

[@TheSimpleDudeOne]

7:22 "I still had a full head of hair" HAHAHAHA

[@FriendlyNeighbourhoodLawyer]

Elon's revival of his hair is more impressive than keeping Tesla afloat for the last 10 years.

[@trapOrdoom]

Idk why you have Mr. Clean unless you’re also bald, but if so this comment is 50x’d, also I love the Mr. Clean pic anyways Lmfaooo.

[@vincentanguoni8938]

I'd trade my hair for teeth any day!!!!

[@AK-tf3fc]

is that patric boyle

[@TheLiquidcure]

"Selling pet food online where people would need to wait days tp receive it in the mail made no sense at all" Chewy: *sweats nervously*

[@Dwightstjohn-fo8ki]

There are items in Canada and esp. rural areas you just can't buy or even order, but needing them is not going to make a company billions.

[@Matt-cr4vv]

Well we are adapted to an online shopping model now. We are accustomed to planning a bit ahead and acquiring things online for cheaper. In the days of retail customers weren’t used to that. And the online products weren’t cheaper to give you a reason to make online purchases. Something like an Amazon though offered a product you couldn’t just to grab so it had a reason for customers to shop with them.

[@daCubanaqt]

Chewy doesn’t sell just food though and they ship pretty fast now.

[@usakira428]

Thank you for throwing in a little humor. Keep up the good work!

[@EnsignShippingLogisticsDurban]

Your channel is growing so well keep up the great content.

[@nasaihyana]

Just found this channel this morning.....been binging all day

[@johanneszwilling]

THANK YOU for a very thoughtful take on this phase in history. Lots of things and stories were new to me! Great closing thoughts too!

[@xzx3]

Brilliant video. I am a fairly recent subscriber. Really admire your knowledge, research, analysis, storytelling style and wonderful witty comments and sarcasm gently thrown in.

[@youtuber-ov6px]

I was looking around for a video like this. Great stuff, thanks again Mr. Boyle

[@theaccountant5846]

I like how you still have your book "Derivatives for the Trading Floor" on your desk lollll.....Good promotion

[@janzalud216]

I really appreciate how this content allows a look into the main forces at play: human psyche and time

[@tomonetruth]

This was excellent. Interesting all the way through, but with a surprising perspective right at the end. Really enjoyed, thanks!

[@poetasintierra]

I teared up right after I saw the rider's tears 😥 Great video!

[@jeremyzezonting6922]

love your channel , please upload more financial content.Good stuff here! Underrated content

[@TheRealLazyBear]

Saturday morning + Coffee + weekly trade review + Patrick Boyle

[@tailtaptailtap]

Really insightful. Glad I subscribed. Thanks a lot Pat!

[@TheShadowcreator]

My dad worked in IT at this time and saw his salary double multiple years in a row. We went on family vacations to Disney World.

[@aaronmuysson6452]

Great video, always refreshing to hear some perspective and not just some guy reading a wikipedia page

[@GEB-yy3ud]

I just wish to thank you for the Peak Boyle photo RE 90's. The imagination is going wild. Bravo.

[@christopherwagner2395]

Exactly what happened. In hindsight it seems insane. But the truth is it seemed pretty insane in real time. Great high-level summary. Thank you.

[@jonb5493]

Another good prez P, I thought I'd emphasize a detail that didn't come across re Priceline: their biz-model was exactly that of any travel agency, regarding relationship with the airlines. It was *NOT* a matter of bidding with the airline for the lowest price the latter would sell a flight for. That price was fixed in advance by the same agreement the airline gave to Priceline that they would give to any other travel agent. The punter bids against only priceline, to determine what priceline will let the flight go for, and thus priceline's margin. The airline's price has already been fixed, just like with any travel agency. Moral: Priceline was a plain ol' travel agency, except it also had a couple PCs in the basement run by some lads with blue hair and hawaiian shirts.

[@Magic_beans_]

One important lesson for modern investors to take away is that conditions can be positive for an industry, but that doesn’t make any particular company a sure thing. Even if electric cars are the way of the future, that doesn’t guarantee Workhorse or Rivian will survive. Who knows, even Tesla could get shaken out. More surprising things have happened.

[@therealrumblefish]

I love your Chanel, you do a great job.

[@christopherkui3141]

Thanks for this video Patrick

[@mirzah.5821]

Thanks Patrick. There is great value in this one.

[@ryanl.9341]

Phenomenal channel, Mr. Boyle. I have been devouring your content across the past few months; I only wish I was lucky enough to be one of your students, and thus receiving (collegiate) credit for my knowledge binging! Thank you for thorough explanations with such cogency, relevance, and elucidation. Thanks, Patrick!

[@mikeagesen4887]

Great show. Great memories.Thanks, Patrick.

[@henry7370]

im fairly new to investing, and your videos are helping a lot. thankyou.

[@Andolem]

Lol the hair part was funny 😄

[@tgd02]

Great, informative, and entertaining vid Patrick! 👍

[@GoodBoy-qs9we]

"The rock musician...(Me: Is that William Shatner?).. and Star Trek actor." lol you got me there.

[@j73stuart]

I recently found Particks content. I'm reviewing old videos, and enjoyed this very much. It also very timely.

[@h2shakwon931]

Great video. I lived and traded during these times. I'll never forget the shock of watching my stock position in Infoseek actually fall on the day it was acquired because it was purchased for less than its valuation. When does that ever happen?

[@d0tz_]

the idea of a railway bubble in the 1800s is so funny to me

[@GoodBoy-qs9we]

It's amazing to me, that companies with similar business ideas to Postmates/Grubhub and Chewy, outright failed because they were ahead of their time.

[@emmanueloluga9770]

Nothing is as powerful as an idea whose time has come

[@Deriv44]

Timing is everything to early or too late no matter how good the idea will kill you

[@totaleXess]

Being early and being wrong are very similar.

[@roberto.8633]

@@totaleXess How so?

[@likemy]

dont worry, all the ones you mentioned are going to fail too

[@doitbeforeyouareready6864]

Great bit of historical recounting Patrick. Thanks.

[@kineahora8736]

🤣🤣🤣”legendary rock musician and also an actor on I think Star Trek”🤣🤣 the deadpan is awesome Patrick

[@vtothegaintnothing]

Very well explained. Incredible research. Well done m8

[@jojotheoj]

You’re a gem. Thank you so much for your content. 💰 🧠

[@robbing_trains]

That William Shatner joke got me good. Love your subtle style of humor Patrick!

[@TheMikkelet]

You conclusion of this, how we are reaping the benefits of a bubble is apt and almost poetic, I think! Well done, great video!

[@nonamernobrainer846]

5:30 In my country, we have a saying that roughly translates to "the quiet one always wins." My guy lost everything because he couldn't keep his mouth closed.

[@TroyFletcherKeyboards]

This video is informative, frightening, and hilarious.

[@dawnfire82]

Some background errors, here. Netscape was not the browser. Netscape was the company. Navigator was the browser. It was also NOT the first browser to combine images and text. That was Mosaic, released 1993.

[@daCubanaqt]

Netscape Navigator!!! I remember that browser 😊

[@timmywashere1164]

Keep in mind E-Trade also did a Superbowl commercial in the years prior where they had to guys sitting in a garage playing music with spoons and a jug or something. Then the chimp jumps on an uprighted trash can and hits the trash can along with the music before the screen fades to black and just says: "We just wasted 6 million dollars on a 30 second commercial. How are you using your money?" Gawd I miss commercials from when the economy is doing well.

[@wallstruss9763]

Thank for another great video, good stuff.

[@MrBumbo90]

20:31 LOL at the Nikola

[@orlandofurioso392]

I love how he teases Nikola on almost every video 😂

[@BenoJ3000]

Fantastic video. As always

[@theoriserra1397]

I like your content a lot. Thank you for providing value to the community. Like.

[@BrandonD19]

Atta boy Patty, another home run!!

[@DeLanoLLoya]

Everything in this universe moves in waves 🌊

[@wtf_usa5597]

Awesome work Patrick! Could you upload another video soon giving your assessment of the current state of things given recent developments? Thank you! 👏

[@davidhollfelder9940]

Back in the late 90s, I worked for a major telecom company, supplying as a vendor, to many V-Capitol funded e-startups. We expected a major downturn after the Y2K spending was over, as very few, if any e-commerce firms (i.e. Netpliance) were turning a profit, while burning thru their money quickly. The bubble bust was no surprise. E-commerce, at that time was “virtual”.

[@maff3]

Thankyou Patrick, I'm sure it took a few hours of your time to put together this very interesting video

[@Local.Motion]

I would never play poker against you Mr. Boyle. You could keep a straight face at a comedy show.

[@jessemcdougall1700]

Insightful observation. Patrick quietly cleans up at poker.

[@greenockscatman]

Never thought about the parallels between the railroad bubble and the dotcom bubble, but it makes perfect sense.

[@Veteran_Nerd]

LMAO that commercial at the end! Great video sir

[@rook77]

Thank you, great video

[@florianwerner1263]

I really liked the inclusion of the gravity car.

[@bigspender107]

Another informative and topical piece 👌

[@felijacobo7788]

awesome video essay

[@eliotbooth9772]

Love your videos. When do you do one about the Reddit-fuel mania on stocks like GameStop? That’s a very interesting topic financially and socially too.

[@PBoyle]

It is uploading as we speak.

[@eliotbooth9772]

@@PBoyle Hehe, what a timing. Thanks Patrick, Great video once again!

[@dtaylor9673]

What a concise and informative lesson in modern history. Thanks.

[@walterm.robertsiiiphd2157]

Another great video. Love your mean and lean narrative style and storytelling talent. Keep up the good work and congrats on your subscriber increases. You deserve it.

[@LA-fr7fx]

Thank you 👍👍