I never heard of it? What have tulips got to do with the stock market anyway ????I bought 100 shares of Amazon last week and I'm sure I'll be laughing all the way to the bank in a couple months.Its just gonna keep on going UP and UP and UP maybe I can buy some tulips with All my Profits. ha ha
MrJasonRodes, your ignorance is showing.....you must be new to the markets, and don't understand these basic priciples. You can read all about the Dutch 'tulipmania' the 'southsea bubble' and other manias in Martin Fridson's classic book "Extraordinary Popular Delusions And The Madness Of Crowds"
It is required reading for any investor, IMHO as well as Edward Leferve's "Reminiscences of a Stock Operator". Good luck. You will need it if you are still long AMZN..............
The tulip bulb crash is the quintessential example of "castle in the sky" or "the greater fool" school of investing. I can't remember exactly when, maybe it was the 1600's. There was a run on tulip bulbs in (Denmark?). Eventually, some rare bulbs were going for the equivalent of the price of a house. People were buying them, not because of their intinsic value - and you could make some money growing rare tulips, but only because they believed they could pay a small fortune for a bulb and someone else would come along who would pay a larger fortune. Well needless to say, one day people realized that tulip bulbs were not worth the modern equivalent of tens of thousands of dollars, and the bubble burst. The next day people who had payed a fortune for their tulip bulbs couldn't give them away. I suppose if you have your broker give you your AMZN stock certificates, you could build a nice little bonfire with them :)
I am a long time student of the tulip phenomenah and others , such as the Sea Bubble, housing in the 80's, stock market in 1929 , as well as my views that this market has the same characteristics. AMZN does not share the same qualities as other tulip companies. Once again , the reason they dont share these qualities is because of their growth prospects mixed with infancy of the industry and the company. Now, this can all change if growth slows or something negative enters the picture for AMZN. Keep in mind, if fundamentals became negative for AMZN and the price didnt subsequently adjust for this, then, yes, it would also be a tulip company.
By the way, Do any of you find KO to be a tulip. I do.