As I was reading over this chapter to prepare for revising and updating it, I became dumbstruck. The changes have been so great that it feels as if I had written this chapter about investing your corporate surplus 30 or 40 years ago, and not just 12 years ago.
In the 10th edition, I mentioned the boom-and-bust Dow Jones Industrial Average (DJIA), which reached a peak of 11,723 in January 2000, declined gradually, and then crashed to a post–September 11 low of 8,236 on September 21, 2001.
Then the DJIA reached a 2006 peak of 12,012 and an all-time high of 14,164 in 2007, fueled by the chimerical housing boom.
The 2008 subsequent housing bust, causing the near collapse of the world financial systems and the Great ...