5 Strange Investment Crazes!

The video explores various investment trends and their outcomes, starting with Amazon's success story. It delves into the Beanie Baby craze, Crocs' rapid rise and fall, Krispy Kreme's expansion issues, the Atkins diet fad, and Snapple's overvaluation. Each case highlights lessons on market volatility, unsustainable growth, and the importance of competent leadership. The video concludes with general investment advice, emphasizing research and caution against following trends blindly.

What percentage of the US e-commerce market does Amazon control?

• 30%

• 50%

• 20%

• 40%

What was the unique strategy used by Ty Warner to drive the Beanie Baby craze?

• Creating a limited supply and retiring versions quickly

• Selling large orders to big box stores

• Advertising heavily on television

• Offering discounts to bulk buyers

What was the initial public offering (IPO) price of Crocs shares?

• $10

• $17

• $25

• $30

What financial issue did Krispy Kreme face that led to a significant drop in stock value?

• Overproduction of donuts

• Channel stuffing to inflate sales numbers

• Increased competition from other donut chains

• Failure to expand internationally

What was a major factor in the decline of the Atkins diet's popularity?

• The founder's death and health issues

• Introduction of new diet plans

• Lack of marketing

• High cost of Atkins products

What was a significant financial mistake made by Snapple after going public?

• Investing heavily in international markets

• Paying off debt instead of growing the business

• Launching too many new products

• Reducing advertising budget

What is a key takeaway regarding investment in cyclical industries like dieting?

• They are unaffected by economic changes

• They are notoriously fickle and risky

• They are highly predictable

• They offer stable long-term returns