Monday, July 09, 2007

And more Tech Blunders: Dot Coms

eToys,, CMGI, Idealabs, 2C2, and so many, many more companies blew up when the bubble burst in 2000. (USA Today article about it). Approximately 40,000 dot-com employees lost their jobs -- and many also lost retirement accounts.

Most of the companies forgot some simple business advice: You have to Sell something! And you have to make a profit.

Now, I have one client who will argue about the profit part because we see so many companies operate in the red, like Level3 for about 18 quarters. But these companies sell stock and bonds to acquire cheap capital to keep business afloat. Some of the losses are paper losses only.

The dot-com build up was a gold rush. The business to be in was selling picks, shovels and wheelbarrows. That's where the gold was. billions in stockholder money

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