1999 Mar - My first 100k online bet AMZN ever - at 52. Now 1844. Be loyal to the management and ready to remarry your divorced bride if you both realign
Yes in Feb 1999 I bought 1920 AMZN at 52 AND the next days sold at 64. Topped at 110 in April l999. Fell 65% to 44 in August 1999. Rose 110% to 107 in Feb 2000. I thought I was a genius in Feb 1999 and would make money easily this way. I did not realise I could have picked anything as the tech sector was in the mid cycle of the most amazing two year bubble bubble which started 1 year earlier and ended 1 year later in March 2000 when it fell 30% in one month and came crashing down 100% to 1998 levels again. It crashed to 7 dollars per share by Nov 2001. Within 18 months of March 2000 there was four 10-30% false upwards corrections. This would have been Great for the person whose great strategy was to surf it down for 2 years from the top, shorting another 30% of FF with every 25% correction back up.
Long in bonds prices would have been a less emotional ride and a great strategy too.
They doubled in price in 2 years.
They doubled in price in 2 years.
Amazon AMZN temporarily topped in early 1999 after 1 month after I bought in Feb 1999 and crashed from April until August.
But rose the following six months 50% until bubble burst in March 2000 when it fell from 110 to 15 in three years.
But rose the following six months 50% until bubble burst in March 2000 when it fell from 110 to 15 in three years.
Ironically if I had stayed in for one year from March 1999 to March 2000, instead of taking my gain of 25% at 64, I would have lost 10% as it would have been down at 58.
If I stayed in for 18 months from March 1999 to Sep 2000 at a price of 15, I would have lost 80% and much more if I had been leveraged.
I conclude that it easier to make a quick 10% in a bubble, than HODL ride a bubble to infinity. I conclude that you would probably get caught in a sudden crash down eventually.
WARNING: Amazon did not return to break even at 64 until 8 years later in 2008 and fell a further 50% from there to 42 in Nov 2008. Then my shy online delivery "divorced bride", started to rise and reached 70 by March 2009. March 2009 was pivotal.
For shorting it or going long. Long would have been better. It has not looked back since then and in 2016, almost 8 years later with only 2014 turning out to be a little correction it now stands at 702. That is a 1000% gain in 8 years.
So is it Time to short it in 2016 at $700 for another two years to benefit from -85% short term gain if there is a 2 year crash?
2018 June it was 2000. In retrospect, Woulda have been terrible to short it at $700 in 2016 if I did do a reverse long bet as punishment for bad short. Even now Nov 2018 it is at $1600.
2019 Peaked at 2020 on 15th July. Nearly triple that of 2016 price. Divorced wife. Good time to short for 6 months. And now in Sep 2019 at $1845. And now in Jan 2020 at $1905.
Funfact: If I HODL for 20 years or got back in at same price and HODL for 11 years. My 100k bet would be worth 40 million now. 400x. So after paying taxes I would have 25 million to retire on.
One good 100k bet at 30k addittion per 10-15 dip could still make me equally good by age 73.
2019 Peaked at 2020 on 15th July. Nearly triple that of 2016 price. Divorced wife. Good time to short for 6 months. And now in Sep 2019 at $1845. And now in Jan 2020 at $1905.
Funfact: If I HODL for 20 years or got back in at same price and HODL for 11 years. My 100k bet would be worth 40 million now. 400x. So after paying taxes I would have 25 million to retire on.
One good 100k bet at 30k addittion per 10-15 dip could still make me equally good by age 73.
Comments