How Not to Diversify and Other Lessons of the Tech Bubble
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Thinking back on all the mistakes his clients made as the dot-com bubble inflated two decades ago, Dan Morgan remembered some funny ideas about diversification.
“They’d say ‘I own Microsoft, Dell and Intel,’” said the 52-year-old fund manager at Synovus Securities Inc., recounting a strategy that proved ruinous as those stocks plunged an average of 72 percent starting in March 2000. The Nasdaq Composite Index has only now recovered from the carnage, closing at a record high for the first time in 15 years.