Merrill Lynch. What remains a mystery is why late-1990s investors were so
gullible as to believe that AOL was then worth so much more on a relative basis
than Microsoft Corp., the most successful tech stock of our time. In retrospect, it
seems quite plausible that investors as a whole fell victim to the “believing is
seeing” problem when it came to AOL. Wanting desperately to believe in the pos-
sibility of untold future riches, AOL investors apparently convinced themselves
that the purchase of even the most ridiculously overpriced stock could be justified
given sufficiently optimistic underlying assumptions. Rather than basing their
investment beliefs ...
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