Bubbles

History repeats itself in a myriad of ways.

The tulipomania, Mississippi scheme and south-sea bubble in the 16&17th centuries seem too silly to be repeated in the modern society today.

The property bubble and even more apparently the bitcoin bubble truly epitomize how history repeats itself.

And those are the big bubbles

little bubbles are exploding every year in the form of stocks

take the example of NQ, the company who claimed to have created an antivirus for phones

Discovered to have undesirable products, Muddy Waters attacked the company and its stock plummeted. Before that, it managed to raise its stock value on little substance to a whopping $20.

The moral of the story?

Always diversify. and diversify heavily.

we aren't prophets who can anticipate the popping of these bubbles; the only way to avoid receiving damage from the explosions is to own tons of little small bubbles, instead of a few big ones.