Fuel Cells and South Sea – History Repeating

Mini-bubbles, in categories of speculative stocks, will always persist. Often caused by the emergence of some new or improved technology (fuel cells in this case), these bubbles are extremely dangerous for individual investors and should be ignored.  The allure of a quick buck, or the idea of buying and then selling to a greater fool in short order, often seduce investors into buying into these mini-bubbles; but the results are usually catastrophic. We’ve seen this movie many times before.  As Edwin Lefèvre says in Reminiscences of a Stock Operator

“Nowhere does history indulge in repetitions so often or so uniformly as in Wall Street. When you read contemporary accounts of booms or panics the one thing that strikes you most forcibly is how little either stock speculation or stock speculators to-day differ from yesterday. The game does not change and neither does human nature.”

Fuel cell mini-bubble? Massive price increases, terrible valuations, and exciting stories...

Fuel cell mini-bubble? Massive price increases, terrible valuations, and exciting stories…