I would suppose that Paul still has Intel. He's got to be thinking of estate planning, and the best thing to do is to pass it on to his heirs with an adjusted cost basis. Given the odds, I would hold it in his situation.
Actually, it is my avowed intention not to leave much of an estate to anyone. In fact, if I get wealthy while I have kids I will get rid of most of it before they are old enough to start thinking that they are someday going to get their paws on it. I don't think, on the average, that family wealth is good for children. There are exceptions, of course. But my kids will have to drive a 15-year old beater to college, assuming that I have any.
Had a thought on Intel, Rambus, and Microsoft. It seems like both INTC and MSFT are playing games with their earning by using the mutual fund part of their companies to ride out bad quarters. The problem is having too much cash. It used to be that companies would increase their dividend under that situation, but that was then. Instead, those two companies are investing in other companies. But the problem is that you end up running your company to make those other companies look good, instead of concentrating on your core business.
It is my suspicion that this explains how Intel got stuck to the Rambus tar baby.
-- Carl |
