Primary Section | Article no: 4 | Dot-com stories and lessons for investors
Thank you for sharing this wonderful post. The stories of Pets.com and Webvan highlight the dangers of prioritizing hype over a solid business model.
Pets.com burned through cash on aggressive marketing but failed due to high shipping costs and unsustainable pricing.
Webvan overspent on infrastructure without ensuring demand, leading to bankruptcy.
Key lessons:
A strong business model matters more than hype.
Overexpansion and excessive spending can kill a company.
Emotional biases like FOMO and loss aversion lead to poor investment decisions.
Buying overvalued stocks can eliminate second chances to recover losses.
Market leaders can lose dominance if they fail to innovate (Yahoo vs Google).
Successful investing requires discipline, patience, and rational decision-making based on fundamentals, not emotions.
Thank you so much Pavan Dev Singh Charak! I'm glad you like it.
Thank you for sharing this wonderful post. The stories of Pets.com and Webvan highlight the dangers of prioritizing hype over a solid business model.
Pets.com burned through cash on aggressive marketing but failed due to high shipping costs and unsustainable pricing.
Webvan overspent on infrastructure without ensuring demand, leading to bankruptcy.
Key lessons:
A strong business model matters more than hype.
Overexpansion and excessive spending can kill a company.
Emotional biases like FOMO and loss aversion lead to poor investment decisions.
Buying overvalued stocks can eliminate second chances to recover losses.
Market leaders can lose dominance if they fail to innovate (Yahoo vs Google).
Successful investing requires discipline, patience, and rational decision-making based on fundamentals, not emotions.
Thank you so much Pavan Dev Singh Charak! I'm glad you like it.