Chapter 6: Waiting for the Bottom
June 9, 2000
San Francisco
Summer was approaching.
The school year was slowly coming to an end, and most students at Grove High School had already shifted their attention away from homework and exams toward vacation plans.
But for Anshul, the season meant something else.
The market crash was accelerating.
NASDAQ Composite
3,201.88
Just a few months earlier it had been above 5,000.
Now it was collapsing faster every week.
Companies that had once been celebrated as the future of the internet were disappearing almost overnight. Investors who had believed the market would rise forever were suddenly facing massive losses.
Inside his bedroom, the glow of the computer monitor illuminated Anshul's calm expression.
He refreshed the market page again.
His trading account appeared.
Portfolio Status — June 9, 2000
Initial Capital: $42,800
Short Positions:
Pets.com
Position Size: $60,000
Profit: $29,600
Webvan
Position Size: $50,000
Profit: $23,100
eToys
Position Size: $40,000
Profit: $18,700
Total Portfolio Value
$154,200
In just a few months his capital had grown to more than three times its original size.
But Anshul wasn't finished yet.
The market still hadn't reached the real bottom.
And until it did, he would continue waiting.
---
The last week of school before summer break was always chaotic.
Students were restless.
Teachers struggled to keep classes focused.
Most people had already mentally left the classroom.
During lunch break Mia sat across from Anshul under the large oak tree near the edge of the school field.
She dropped her backpack onto the grass beside the bench.
"Finally."
"Finally what?"
"Summer vacation."
"You're celebrating already."
"I've been waiting for this since January."
"That sounds dramatic."
"It's realistic."
She leaned back against the bench and looked at him carefully.
"You don't look very excited."
"I am."
"You have a strange way of showing it."
"What should I do?"
"Smile more."
He smiled slightly.
"There."
"That barely counts."
---
A few minutes later Mia kicked her shoes lightly against the bench.
"So what are you doing this summer?"
"Working."
"Of course you are."
"What about you?"
"My parents want me to attend some leadership program."
"That sounds useful."
"It sounds boring."
She looked at him again.
"You could come with me somewhere instead."
"Where?"
"I don't know. Somewhere not involving stock charts."
"That eliminates many places."
Mia sighed.
"You're impossible."
---
Later that afternoon they walked home together as usual.
The sun was bright and the sidewalks were warm beneath their feet.
Halfway down the street Mia suddenly stopped.
"What?" Anshul asked.
She turned toward him.
"Promise me something."
"That depends."
"If you become ridiculously rich someday…"
"That's still theoretical."
"…you'll still hang out with me."
He looked at her for a moment.
"I'm pretty sure that's not going to change."
She nodded.
"Good."
Then she smiled.
"Because I'd hate to say I dated a future billionaire who forgot about me."
He raised an eyebrow.
"You're confident about the billionaire part."
"I believe in your weird brain."
"That's flattering."
---
That night Anshul sat at his desk again watching the market charts.
Outside his window the quiet neighborhood slept peacefully.
Inside the financial world, however, panic continued spreading.
He opened his account again.
Portfolio Status — June 9, 2000 (Evening)
Total Portfolio Value
$171,500
The crash had created enormous profits.
But the real opportunity was still coming.
Soon, strong companies would fall to incredibly cheap prices.
Amazon.
Apple.
Intel.
Companies that would dominate the future.
And when the market finally reached its lowest point…
Anshul would begin buying.
Because the second phase of his plan was about to begin.