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Technology Stocks : Dell Technologies Inc.
DELL 133.78-0.1%Nov 14 9:30 AM EST

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To: jhg_in_kc who wrote (149621)12/21/1999 2:23:00 PM
From: Chuzzlewit  Read Replies (1) of 176387
 
jhg,

It will not take a catastrophe to bring these stocks down. It will be the sudden realization that expected growth is not nearly enough to justify today's prices.

If we exclude the oil embargo and intervening inflation you can see what I mean. For example, in January of 1972 Sony was trading at $16.29. Today (28 years later) it is trading at $209. The annualized rate of return has been only 9.54% (well below the average return for NYSE stocks over that period). Over that same period the DJIA has returned about 11% plus dividends. I would guess that the total annualized return of the DJIA (including dividends) is close to 13% over those 28 years.

And SNE has been one of the better performers over that period. Look at stocks like IBM, Xerox, McDonalds, Disney and Polaroid.

TTFN,
CTC
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