Y2K Bug Panic & IT Services
The Y2K bug caused global panic. Offering IT consulting, system backups, and software upgrades to nervous small businesses was highly lucrative.
REQUIRED CLEARANCE
Basic computer knowledge and sales skills.
KNOWN HAZARDS
The panic subsided very quickly after Jan 1.
HISTORICAL CONTEXT
Fear that legacy computer systems would crash due to the year change to 2000.
Join Alibaba Early
SoftBank invests $20M in Alibaba. Moving to Hangzhou to join Jack Ma's team as an early employee grants you massive stock options.
REQUIRED CLEARANCE
Willingness to work long hours for low pay in Hangzhou.
KNOWN HAZARDS
99% of early internet startups failed. Alibaba wasn't a sure bet.
HISTORICAL CONTEXT
B2B e-commerce was just starting in China.
Windows 2000 & Computer Training
With the release of Win 2000, PC adoption surged. Opening a 'Computer Training Center' to teach typing and basic OS skills printed money.
REQUIRED CLEARANCE
A small rented room and a few basic PCs.
KNOWN HAZARDS
Regulatory crackdowns on unlicensed training centers.
HISTORICAL CONTEXT
The digital divide was huge; most adults had never touched a mouse.
Sony PS2 Console Smuggling
PS2 releases in Japan. Smuggling 'grey market' consoles to China (Huaqiangbei/Zhongguancun) yielded massive arbitrage margins.
REQUIRED CLEARANCE
Connections in Japan/Hong Kong and physical retail presence.
KNOWN HAZARDS
Customs confiscation and intense grey market competition.
HISTORICAL CONTEXT
Game consoles were highly sought after but officially banned/unavailable in China.
Dot-Com Bubble Bursts
NASDAQ peaks at 5048. Shorting tech stocks or moving to cash protects you from a 78% wipeout.
REQUIRED CLEARANCE
Contrarian mindset, brokerage account with options.
KNOWN HAZARDS
Market irrationality could trigger margin calls before the crash.
HISTORICAL CONTEXT
Euphoria around '.com' companies led to insane valuations.
Sina (SINA) IPO
Sina lists via the VIE structure. Waiting for the post-crash dip allows you to buy China's top portal for pennies.
REQUIRED CLEARANCE
Patience and access to offshore stock trading.
KNOWN HAZARDS
The VIE structure's legality was heavily questioned initially.
HISTORICAL CONTEXT
Sina pioneered the legal framework that allowed all future Chinese tech IPOs.
The Internet Cafe Goldrush
Opening a grassroots Internet Cafe. Computers run 24/7 charging 5-10 RMB/hour. The return on investment was incredibly fast.
REQUIRED CLEARANCE
Upfront capital for basic PCs and a location.
KNOWN HAZARDS
Fire hazards, hardware theft, and impending strict regulations.
HISTORICAL CONTEXT
ADSL was rolling out, but home PCs were too expensive for the masses.
Early eBay Information Arbitrage
Exploit the dawn of e-commerce by flipping undervalued garage sale finds on early eBay.
REQUIRED CLEARANCE
A digital camera, internet access, and weekends to hunt for inventory locally.
KNOWN HAZARDS
Shipping logistics and dealing with early internet scams/checks bouncing.
HISTORICAL CONTEXT
eBay was growing exponentially, but most sellers didn't know the true value of collectibles globally.
NetEase (NTES) IPO & Crash
NetEase IPOs and crashes below $1. Buying at pennies and waiting for their gaming pivot created 100x wealth.
REQUIRED CLEARANCE
Extreme conviction in Ding Lei's pivot to online gaming.
KNOWN HAZARDS
NetEase was actively facing delisting due to false accounting.
HISTORICAL CONTEXT
Chinese portals were desperately searching for a profitable business model.
Pinyin Domain Squatting
Registering generic 2-syllable pinyin .com domains for $10 each. Years later, they sell to tech giants for millions.
REQUIRED CLEARANCE
A credit card (rare in 2000 China) and a dictionary.
KNOWN HAZARDS
Holding costs over years and trademark disputes.
HISTORICAL CONTEXT
Most Chinese companies didn't understand internet real estate yet.