Byline: Stanford Graduate School of Business
STANFORD, Calif., Dec. 14 (AScribe Newswire) -- Investors who lived through the dot-com bubble are unlikely to forget it. But although the still-raw details of that era have been documented in countless publications - and are likely to be ensconced in MBA textbooks for decades to come - those who didn't experience it will probably not learn from history.
That's because intellectual knowledge of the risks of over-hyped and overvalued stocks doesn't seem to do investors much good when it comes to avoiding future speculative disasters. Instead, first-hand experience of a bubble appears to be necessary to make investors wary of returns that seem too good to be true.
"After a crash, people are quite aware of the potential dangers and adjust their investing behavior accordingly. But after 20 years or so, that memory is erased, and you again have the conditions that make another bubble …