Buy, Lie, and Sell High : How Investors Lost Out On Enron and the Internet Bubble

Mills (business administration, Harvard Business School) examines the expansion and collapse of the economic bubble surrounding information technology stocks in the United States. He compares the American situation to a similar German bubble that had vastly different outcomes, blaming much of the problem on inability of the "financial value chain" of accountants, investment banks, money management firms, and the media to accurately assess the short-term value of companies. The discussion of Enron is mostly limited to one short chapter that relates the collapse of the company to some of the larger processes that Mills details. Annotation (c) Book News, Inc., Portland, OR (booknews.com)

Why did the Internet and Enron stock collapses really happen? Was it arrogance? Greed? The "madness of crowds"? Just plain bad luck? Or something else entirely?

In Buy, Lie, and Sell High, Harvard Business School Professor D. Quinn Mills offers the first systematic analysis of both the Internet stock bubble and the Enron scandal. Drawing upon new research-including an extensive review of the latest lawsuits and securities documents-Mills uncovers both systemic causes and outrageous misbehavior. He demonstrates how each link in the "financial value chain," from venture funds to auditors and regulators, not only failed to protect small investors, but also actively contributed to their losses.

Mills demonstrates why it didn't have to be that way, comparing the U.S. experience with that of Germany, which experienced its own Internet stock bubble with far milder consequences to ordinary investors. He then offers practical and detailed recommendations for investors, citizens, and policymakers seeking to keep it from happening again.

Includes exclusive interviews with and contributions by:

• Ted Dintersmith, Charles River Ventures
• Julian Kurz, The Boston Consulting Group
• Robert Glauber, CEO/President, National Association of Security Dealers
• Barbara Boehnlein, Ph.D., ABN AMRO Rothschild
• Patrick Boos, entrepreneur, Webmiles
• Wilfried Beeck, entrepreneur, Intershop
• Christoph Peck, Management Angels
• Christiane Sommer, entrepreneur, BRAND EINS
• Juergen Kohr, entrepreneur, DATACOM.net

The Internet bubble: What really happened—and why.

• Includes the first detailed analysis of the Enron collapse
• Why the Internet stock collapse was no accident
• Who lost—and who benefited
• How the disaster could have been averted
• Avoiding the next speculative bubble: techniques for investors, recommendations for policymakers

Investors lost millions of dollars in the Internet collapse—and, according to conventional wisdom, they only have themselves to blame for being greedy, shortsighted, and ignorant of business fundamentals. But is that the real story? In this riveting and insightful book, Harvard Business School Professor D. Quinn Mills argues that the Internet bubble and subsequent collapse was no accident: Blame can be placed squarely at the feet of venture firms, investment banks, accountants, mutual funds, brokerages, federal regulators, and the Federal Reserve—not "dumb small investors." Through extensive original research and the contributions of many active participants, Buy, Lie, and Sell High offers authoritative answers to the questions every investor is asking: "What actually happened during the Internet bubble?" "Who got the money I lost?" "Why did it happen?" "Who's to blame?" "What can I do about it?" "Will it happen again, and how can I keep it from happening to me?"

Mills compares the U.S. Internet bubble with events in Germany, where an Internet bubble also arose—but with radically different and far less serious consequences. Drawing on the same ideas, he also offers the first detailed analysis of the Enron collapse. Then Mills presents a specific, rigorous analytical structure for helping investors avoid future bubbles—as well as the first detailed proposals for effective reform.

Through extensive original research and the contributions of many active participants, Buy, Lie, and Sell High offers authoritative answers to the questions every investor is asking: "What actually happened?" "Who got the money I lost?" "Why did it happen?" "Who's to blame?" "What can I do about it?" And most important of all, "Will it happen again, and how can I keep it from happening to me?"

Why did the Internet and Enron stock collapses really happen? Was it arrogance? Greed? The "madness of crowds"? Just plain bad luck? Or something else entirely? In Buy, Lie, and Sell High, Harvard Business School Professor D. Quinn Mills offers the first systematic analysis of both the Internet stock bubble and the Enron scandal. Drawing upon new research -- including an extensive review of the latest lawsuits and securities documents -- Mills uncovers both systemic causes and outrageous misbehavior. He demonstrates how each link in the "financial value chain," from venture funds to auditors and regulators, not only failed to protect small investors, but also actively contributed to their losses. Mills demonstrates why it didn't have to be that way, comparing the U.S. experience with that of Germany, which experienced its own Internet stock bubble with far milder consequences to ordinary investors. He then offers practical and detailed recommendations for investors, citizens, and policymakers seeking to keep it from happening again.Investors lost millions of dollars in the Internet collapse -- and, according to conventional wisdom, they only have themselves to blame for being greedy, shortsighted, and ignorant of business fundamentals. But is that the real story? In this riveting and insightful book, Harvard Business School Professor D. Quinn Mills argues that the Internet bubble and subsequent collapse was no accident: Blame can be placed squarely at the feet of venture firms, investment banks, accountants, mutual funds, brokerages, federal regulators, and the Federal Reserve -- not "dumb small investors." Through extensive original research and the contributions of many active participants, Buy, Lie, and Sell High offers authoritative answers to the questions every investor is asking: "What actually happened during the Internet bubble?" "Who got the money I lost?" "Why did it happen?" "Who's to blame?" "What can I do about it?" "Will it happen again, and how can I keep it from happening to me?" Mills compares the U.S. Internet bubble with events in Germany, where an Internet bubble also arose -- but with radically different and far less serious consequences. Drawing on the same ideas, he also offers the first detailed analysis of the Enron collapse. Then Mills presents a specific, rigorous analytical structure for helping investors avoid future bubbles -- as well as the first detailed proposals for effective reform. Annotation Why did the Internet and Enron stock collapses really happen? Was it arrogance? Greed? The "madness of crowds"? Just plain bad luck? Or something else entirely? In Buy, Lie, and Sell High, Harvard Business School Professor D. Quinn Mills offers the first systematic analysis of both the Internet stock bubble and the Enron scandal. Drawing upon new research -- including an extensive review of the latest lawsuits and securities documents -- Mills uncovers both systemic causes and outrageous misbehavior. He demonstrates how each link in the "financial value chain," from venture funds to auditors and regulators, not only failed to protect small investors, but also actively contributed to their losses. Mills demonstrates why it didn't have to be that way, comparing the U.S. experience with that of Germany, which experienced its own Internet stock bubble with far milder consequences to ordinary investors. He then offers practical and detailed recommendations for investors, citizens, and policymakers seeking to keep it from happening again This is the eBook version of the printed book. If the print book includes a CD-ROM, this content is not included within the eBook version. In Buy, Lie, and Sell High, Harvard Business School Professor Daniel Quinn Mills offers the first systematic analysis of both the Internet stock bubble and the Enron scandal. Drawing upon extensive new research and insider interviews, Mills uncovers both systemic causes and outrageous misbehavior. He demonstrates how each link in the'financial value chain'failed, from venture funds to auditors and regulators. Finally, he offers practical guidance for investors and policymakers seeking to avoid the'next'speculative disaster.