Making Money Minute - September 30, 2025
Update: 2025-10-02
Description
Making Money Minute with Ron Hiebert - Why Booms Go Bust
When investors get excited about a trend with blockbuster potential, they often over invest. After an idea gets flooded with too much cash, investors seldom get a return that justifies the amount put in. Imagine spending $300,000 to restore a classic car, only to discover when you are finished, that the best price you will be able to get at auction is $50,000. When reality hits that the money spent greatly exceeds the investments return potential, the herd rushes to the exit, panic selling for whatever little they can recover.
When investors get excited about a trend with blockbuster potential, they often over invest. After an idea gets flooded with too much cash, investors seldom get a return that justifies the amount put in. Imagine spending $300,000 to restore a classic car, only to discover when you are finished, that the best price you will be able to get at auction is $50,000. When reality hits that the money spent greatly exceeds the investments return potential, the herd rushes to the exit, panic selling for whatever little they can recover.
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