The beauty of being a long-term, value investor is that you get vindication every 20 years or so. Unfortunately, that is small compensation for all those luncheons with colleagues bragging about their stock picks doubling, when the best thing you have to celebrate is a ten-cent dividend bump. There are also uncomfortable situations, such as stepping into the batter's box at the company softball game, as hecklers taunt you with nicknames like "Dead Money."For better or worse, my value-oriented investment style generally prevents me from participating in "bubbles." Early in that phase, frothy stocks are disqualified by my value screens, so all I can do is watch them inflate, rise and pop. This article describes how I believe the market action of Apple (AAPL) and Facebook (FB) signals that the "Dot-com Bubble" can rest in peace.
The anticipation leading up to the Facebook IPO, combined with lofty valuations of some tech-related stocks, has created whispers of a tech bubble rebirth. With the tech-heavy NASDAQ Composite Index eclipsing the 3000 mark for the first time in a decade after the Dot-com Bubble burst, it may be worth considering if a new generation of action-addicted investors are ready for Dot-com2. The concerns of a bubble probably contributed to the NASDAQ drop of more than 8% in the first half of May.
Read more: The Final Nails In The Dot-Com Coffin: Facebook And Apple - Seeking Alpha
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