YM778.TV Chapter 40 The Bubble
Buckingham Palace is a London royal residence and the administrative headquarters of the monarch of the United Kingdom. Located in the City of Westminster, the palace is often at the center of state occasions and royal hospitality. It has been a focal point for the British people at times of national rejoicing and mourning.
" Here Sami, it was not called Palace at the beginning. Originally known as Buckingham House, the building at the core of today\'s palace was a large townhouse built for the Duke of Buckingham in 1703 on a site that had been in private ownership for at least 150 years. King George III acquired it in 1761 as a private residence for Queen Charlotte and became known as The Queen\'s House. "
She also informed various points of how the palace was bombed nine times during the second world war. The whole family had to relocate for five years in other residences during that time. We toured the garden and other few rooms. It was physically impossible to tour the whole place in so little time.
The palace has 775 rooms, and the garden is the largest private garden in London. The state rooms, used for official and state entertaining, are open to the public each year for most of August and September, and on some days in winter and spring.
It was getting late and guests would be arriving soon, so we made our way back to the venue. It is a large room with several chandeliers littered all over the ceiling. The whole place made Rothchild\'s family look like a small hut. I guess the longer history and prestige really showed through careful decorations. The service company along with castle cooks have already placed all the tables and started receiving guests.
I separated from others to go get a glass of water; I was feeling parched. I walked toward the entrance area and asked for water from the waiting person.
" Excuse me, Can I get a cup of water, please. " I said politely.
She was flustered seeing me. I ignored her reaction and just smiled. She went ahead to fetch the water when I heard people talking from the corner of my eyes.
There were five people: two young men and three middle-age persons . I could not hear the conversation, but from where I was stationed; I could see that the younger men were enthusiastically asking questions from the other three. They were discussing something which made me curious. I approach the group. People who were invited were all powerful people and I could create some new opportunities, but for that I have to talk to people.
" Sir John, I believe that \'Webvan\' will be the next big thing. It is already selling for above 50 dollars per share. The company expanded to 8 cities in 18 months, raised $375 million, and was valued at $1.2 billion. With the rise of people online it will grow further. It is only right to invest early to reap the benefits early. " The young man said.
" I don\'t think it is wise to invest in internet companies. It is a fairly new technology with no stable base. I think, it is best to wait and observe the market more before deciding." Another young man said.
" The market has been rising steadily, which is a good sign, but I am skeptical about the craze with internet companies. You have to pick carefully. " one of the middle-age man said.
Other two also gave answers along the same line. I had read about the market situation which looked similar. \' Webvan\' company name also matched, which made me certain; I walked up and said---
" I think investors are pumping money into Internet-based startups in the hopes that these fledgling companies would soon turn a profit, but that house of cards is destined to fail in the future. "
Hearing another voice joining them, they all looked toward the voice and stared at me with confusion. One of the young man looked annoyed that I disturbed them.
" Boy, do you even know what we are talking about? I think you are lost. I will call someone to take you to your mother." He said politely, but you could feel his hostility between his sincere words.
" Wait " one of the middle age person said, and continued. " Why do you say that it will fail? I want to hear your answer. " He probably thought I would give childish answers and just wanted to be polite, so as not to upset my family. They also knew people who would attend today, had considerable standings in society, and wanted to avoid unnecessary trouble.
I was not deterred by their reaction. Anyone would be surprised if a little boy started talking about business and stock markets. I nodded and continued--
" The technology-centric NASDAQ Composite Index rose from less than 1,000 in 1995 to around 5000, which is a high for the index. In the rush to cash in on the Internet boom, many investors are ignoring traditional investment metrics, such as the ratio of a company\'s current share price compared to its per-share earnings. Instead they are subscribing to a business model that favored building brand awareness and market share quickly, even if that required offering services or products for discount prices or for free. "
Seeing me speak technical terms surprised them even more. They began to evaluate my statement and started listening to me more seriously. I continued--
" Low interest rates in 1998 are helping drive up the amount of capital invested in these companies. Advances in technology infrastructure and a growing understanding of the Internet are enabling people in developed countries to easily get online. These factors, combined with the seemingly overnight fortunes made by some of the startup founders whose companies went public, fueled the exuberance. You can never ignore these success stories whenever you tune into the news. It does make you wonder if the federal reserve is waiting in the shadows to strike when the situation crumbles. "
" There are some companies like shopping sites and companies which have sufficient cash flow that can weather the storm. But ultimately you have to decide for yourself where you will place the money. After all it\'s your money. " I finished after giving them some hints.
As I was giving out the monologue, an old man quietly joined beside me, whom I failed to notice. He was also in the thoughts along with the five original people. I was waiting for them to speak when I saw my parents approaching. I wanted to call them, but I heard from my side ---
" S-s-sister Laura " both young men said with a look of horror in their eyes.
Mother came forward, ignoring the duo, faced the old man, and said--
" Father, Thanks for coming. " she said respectfully.