Chapter 5: Panic
May 3, 2000
San Francisco
The panic had begun.
What started as a small correction in the technology market had quickly turned into something far more serious. Every day new headlines appeared about falling internet companies and investors losing millions.
Financial news channels spoke in urgent tones.
Analysts who had once predicted endless growth were now warning about massive losses.
NASDAQ Composite
3,762.55
Another brutal drop.
Inside his bedroom, Anshul watched the charts carefully as the numbers refreshed on his screen.
The dial-up modem crackled quietly as the page reloaded.
His notebook lay open beside the keyboard.
Several company names were crossed out with red ink.
Pets.com
Webvan
Boo.com
The internet boom had created hundreds of companies that survived only on investor excitement. Now that excitement was disappearing.
And those companies were collapsing with it.
Anshul opened his trading account.
Portfolio Status — May 3, 2000
Initial Capital: $42,800
Short Positions:
Pets.com
Position Size: $60,000
Profit: $21,300
Webvan
Position Size: $50,000
Profit: $17,900
eToys
Position Size: $40,000
Profit: $14,200
Total Portfolio Value
$119,400
In less than two months his capital had nearly tripled.
But he knew better than to celebrate too early.
The market still had further to fall.
And the true opportunity would appear only when fear reached its peak.
---
The next day at school, none of the chaos in the financial world seemed to exist.
Students talked about music, sports, and weekend plans.
The stock market crash might have been front-page news, but it meant nothing to most teenagers.
Mia sat beside him in history class, tapping her pencil against the desk.
"You didn't come to debate club yesterday."
"I had work."
"Stocks again?"
"Yes."
"You're hopeless."
"That's a strong accusation."
"It's accurate."
She leaned closer and whispered.
"You know normal couples actually spend time together."
"We walked home yesterday."
"That doesn't count."
"It should."
She sighed dramatically.
"One day I'm going to replace you with someone less boring."
"That sounds like a terrible decision."
Mia laughed quietly.
"You're lucky I like you."
"I am."
---
After school they walked through the park near their neighborhood.
Spring had fully arrived in San Francisco, and the trees were beginning to turn bright green again.
Several younger kids were playing soccer on the grass while parents watched from nearby benches.
Mia sat down on one of the benches and stretched her arms.
"You're always thinking about the future."
"That's not a bad habit."
"Maybe not."
She turned to look at him.
"But sometimes you act like you already know what's going to happen."
Anshul hesitated for a moment.
If she only knew how close that statement was to the truth.
"I just study patterns," he said finally.
"Patterns?"
"Markets move in cycles."
"That sounds complicated."
"It isn't once you understand it."
She leaned back against the bench.
"Well, Mr. Future Billionaire…"
He raised an eyebrow.
"That's ambitious."
"…just don't forget about the present."
"I won't."
---
That night the market fell again.
NASDAQ Composite
3,541.27
Another massive drop.
Investors everywhere were beginning to panic.
But Anshul watched the numbers calmly.
Because every point the market fell brought him closer to the moment he had been waiting for.
The bottom.
When fear dominated the market completely…
That would be when the smartest investors started buying.
And when that moment arrived, Anshul intended to use everything he had earned during the crash.
Because the next decade would create technology giants.
Companies that would change the world.
And this time…
He planned to be one of the people who owned them.