Engines that Move Markets

[PrivateInvestor]

The Internet bubble of the late 1990s was not a unique event. It's representative of what has been happening for the past two centuries. Amazon.com: Engines that Move Markets: Technology Investing from Railroads to the Internet and Beyond: Alasdair Nairn: Books provides a history lesson of technology breakthroughs and the investment bubbles they create.

One theme that exists throughout these bubbles is that it's the retail investor who ends up getting hurt by losing money when the bubbles pop. It's more profitable to wait until the new technology establishes a stable industry with businesses that have a sustainable competitive advantage (i.e., economic moat) before you invest in them.