Being a tulip farmer

In conversation with an investor, he asked my thoughts on our sector (B2B) going through a likely bubble. I told him it reminded me of an MBA case study on “intrinsic value”.

Tulip mania, 1636. Tulips were in high demand. It was one product that whole Europe wanted, and the Dutch were good at growing it. Prices soared exorbitantly. At its peak, financiers were selling a tulip bulb or its future contracts for over 10 acres of land or 4 large houses. In the winter of 1637, the tulip index rose 20x. But eventually that price had no buyers and it all crashed to nothing.

Many financiers became rich, many more bankrupt. Debts weren’t honored. There was hysteria on the exchanges. Finally, anti-speculation laws were enacted, and the financial world became regulated.

But the average Dutch farmer had no clue of the mania. He still kept growing tulips, many more of it. Tulips kept soaring in popularity and Netherlands became the “Land of flowers”.

I told the investor that we at OfBusiness are like the Dutch farmer. Our tulips are of value to our customers, suppliers, employees and shareholders. Oblivious to us, tulip manias will come and go. But we’d keep growing more and more tulips, and dream that one day our business becomes what our country will be known for.

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