In the nineteenth century investors gambled and lost millions on railways being built around the world, particularly in South America.
Today we’re seeing a similar frenzy with tech startups, as Zero Hedge points out the combined valuation of the US unicorns is $486 billion with a combined profit of zero.
For some of those unicorns that measure is unfair as they will eventually be profitable although, as Twitter has shown, they may struggle to justify their fat valuations.
Many however will vanish, just as the South American railways did 150 years ago.
Of the railways lines that were built, many bought great change and prosperity to the communities they connected but even there many of the investors did their money.
It’s not hard to think we’re living in similar times today.