• Thought of the Day

    Thought of the Day

    2000: Investors do not make mistakes, or bad mistakes, in buying good stocks at fair prices. They make their serious mistakes by buying poor stocks, particularly the ones that are pushed for various reasons. And sometimes — in fact, very frequently — they make mistakes by buying good stocks in the upper reaches of bull markets.

    –Benjamin Graham, in Janet Lowe, ed., The Rediscovered Benjamin Graham: Selected Writings of the Wall Street Legend (New York: John Wiley & Sons, 1999), p. 197.

Today in Financial History

2000: The U.S. Securities & Exchange Commission, the FBI, and the U.S. Attorney for the Southern District of New York crack down on more than 100 alleged mobsters and their cronies, claiming that the Mafia — in cahoots with brokers, investment bankers, a money manager, and a retired New York City cop — manipulated the prices of 19 stocks, defrauding thousands of investors out of an estimated $50 million. Much of the alleged fraud occurred in dotcom stocks, and prosecutors suggest that the Mob — shut out of gambling, drugs, and prostitution — has moved into the hottest new vice, Internet stock trading.

The Wall Street Journal, June 15, 2000, p. C1

1951: The U.S. Census Bureau finally fires up its UNIVAC I, the world's first commercial electronic computer, which had been delivered two-and-a-half months earlier. Built by the Mauchly-Eckert division of Remington-Rand (now part of Unisys Corp.), UNIVAC made headlines a year later by predicting a landslide presidential victory for Dwight Eisenhower — a prediction deemed so unlikely that the radio and TV networks refused to air it.

1949: The Dow Jones Industrial Average finishes the day at 161.86, up 0.26 points, as the longest bull market of all time begins. Stocks go up nearly non-stop for the entire decade of the 1950s, finally peaking on Dec. 13, 1961, at 734.91, a 355% gain (or roughly 13% annually).