The bubble will burst… eventually…

The secret to have many good balloon is to pump it slowly and steadily, at some point we know when to stop and move to other balloon. If we pumping air to a balloon at the very fast rate and have no ideas when to stop, naturally it will burst at some point.

Similarly to the business, we witnessing many bubble burst in our history: great depression in the early 19th century, Dot com burst in 2000, Enron, banking financial crisis and the most current is Dubai World. Are we human learning at all…?

But the bubble burst is good… it weed out a speculative or weak and average company. Usually after the burst, some company will emerge as strong company, either a new one who learn a lot from the burst and the old one who strong enough to survive the burst. See how the net evolving in Indonesia.

Remember how Astaga!com spending like crazy in advertising to capitalize the internet boom around the world. At that time the internet penetration is still around 3%. Alas the bubble burst before they IPO. The company finally  sold to M-web at the very low price. Now when the internet penetration getting higher, some company can actually make money out of it like Bhineka.com or detik.com, they build their business slowly and steady. While for Astaga.com although they still exist now, if they don’t do anything, they will become irrelevant and potentially gone forever.

If you see a bubble being pumped very fast, be prepared… it may explode soon… problem is, we do not know when, and if it actually explode, it  always surprised all of us, even if we somewhat prepared…