Please stay tuned for important disclosure information at the conclusion of this episode.

Welcome to Investing Insights. I'm your host, Ivana Hampton. The tech bubble appeared to resemble

another era. However, many managers declare then that this time is different.

Until it wasn't, Morningstar Research Services, senior manager research analyst Jack Shannon, is joining investing insights.

Jack has written about how 2020 and 2021 were a virtual repeat of the dot-com bubble.

So Jack, why did you decide to compare these two investing periods?

Yeah. So in my everyday role here at Morningstar, I talk with fund managers, get sort of annual updates from them just to see what they're doing with their portfolio and sort of explaining

maybe the past years moves within their portfolio. And so what I had begun to hear through 2020 and then really

in the 2021 was especially among growth managers, like you'd see them start buying stocks and maybe

they usually didn't buy. You'd see them buying, you know, these younger,

unprofitable companies where typically they'll tell you, like, I only want to buy entrenched

businesses with entrenched competitive advantages, yada, yada, yada. And so you'd ask me about, like,

well, why are you sort of repositioning a little bit? And I would always sort of frame it as, like,

the skeptic could say this is sort of a repeat

of the tech bubble where things are starting to get a little inflated. And they'd always tell

me, well, you know, this is very different than the tech bubble. You know, this time these tech

companies are like producing a lot of cash flow. You know, they're profitable. This is not like the, you know, the dot-com bubble where any company with a dot-com

in their name would then, you know, see this big valuation jump.

And so I always hear this from managers and I sort of took it at, you know, sort of the

trust but verify sort of stance where it's like, okay, interesting.

But at some point I'm going to get around to, like, actually verifying this.

And so then after the 2022 market decline, where especially these, that basket of stocks did

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