The Ulysses Contract by Michael Kemp

Author:Michael Kemp
Language: eng
Format: epub
Publisher: Major Street Publishing
Published: 2023-06-15T00:00:00+00:00

Radio

People marvelled at the radio when they first experienced it, and justifiably so; it is truly amazing. Just stop and think about radio technology for a moment. I mean it. Sounds produced in one place travelling through the air for hundreds of miles to reach another place. It’s no surprise that a century ago this was considered to be absolutely space-age stuff – except that back then the space age had yet to arrive!

Radio caught the imagination of investors back then in the same way that the internet captured our imagination three decades ago. Radio Corporation of America (RCA) was the tech darling of the 1920s. And, as investors bought into the story, its share price rose by 939 percent between 1925 and 1929.

That price peaked at $568 in September 1929. Three years later it was trading at around $10 to $15. Those who had remained heavily invested in RCA throughout the early 1930s saw their stock portfolios decimated.

But here’s the thing: ask those who bought it in September 1929 if they believed it to be worth $568 per share. I’d suggest few would have denied that it was. After all, as I’ve already mentioned, the stock market price was (for them) proof in itself.

The fact is that RCA was a solid company. It made real profits. It had demonstrable value. And it remained in operation until 1986. But when too many investors buy into an investment story, then the share price develops legs of its own.

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