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Technology Stocks : Dell Technologies Inc.
DELL 138.940.0%Dec 5 9:30 AM EST

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To: Murrey Walker who wrote (148776)12/8/1999 4:48:00 PM
From: Chuzzlewit  Read Replies (2) of 176387
 
Murrey, let me illustrate my points from the distant past. Two hot growth stocks of the 1960's were IBM and XRX. I chose these for analysis because both survived. Both were trading at very high multiples in 1969, and both had hit highs in October of about 19 1/8 (split adjusted). Today, IBM is around $116, and XRX is around $25. Suppose an investor bought those issues and held for 30 years. Not counting dividends, IBM gained 6.19% per annum, and XRX gained 0.009%. What makes this especially intriguing is that the same arguments for growth were made 30 years ago as are being made today. The companies had franchises, etc.

I haven't done the calculations, but I suspect that the S&P has risen around 12% per annum over the intervening years.

I think there is an important take home lesson to be learned from this kind of analysis.

TTFN,
CTC
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