Kenneth,
Good thing you caught your friend on that silly math. I'll never understand the line "he was going to buy some after the split when it was cheaper".
Please point your friend to Berkshire Hathaway BRKa, it was $6000 a share during the Gulf war, now about $34,800. That's about a 6x gain in about 6 years. I think Intel's only a little bit better in the same time.
Basically, I'm saying it's a percentage game. You got X dollars and it goes up Y percent in Z years/days in Intels case. I've never really met anyone who made money on "cheap" stocks, I bought MSFT at 88, split adjusted about 22. Even then, my friends I tried to persuade to buy it said "Oh my, so expensive", "I prefer $10 stocks". Sad to say, they have made little gain in the same timeframe. Unfortunately, good companies shares don't usually trade for $10! |
