Investment Mistake #1 - Jump In At The Hype

Back in 1999 when I started working my impression on stock wasn't positive. I though of it as gambling rather than investment. During that year I saw Nasdaq went from 2,207 all the way to 4,000 by the end of December.

At the same time I saw how my co-workers and friends were making easy money on high flying stocks such as wireless company Qualcomm(QCOM) and business software maker I2 Technology(ITWO). I2 Technology went from $30 in January 1999 and finished the year at $195, an amazing 500% profit in just one year. And Qualcomm at the same time went from $50 to $177 - an OK 254% gain compared to I2. But don't forget during the same time Qualcomm had a 2:1 stock split in May and then another 4:1 stock split in December so actually instead of $177 it should actually be $1416 - a gain of 2,700% in one year!! This is why Qualcomm is one of the most popular stock during the time.

So seeing how people double their money 5 times to 30 times in a year and then seeing my tiny miserable savings sitting in the back and earning like 2% interest, I did what I thought the smartest move at the time - jump in the stock market and catch the ride of easy money.

So my first ever investment goes to a techology leader at the time - a high flying telecom company called Worldcom.