Hi Dipy:
Great to hear from you.
You ask:
> Well, what would you feel if some poor soul took stock-market risk over the last 5 years and ended up with T-bill returns? Very, very, very sorry?
If you are referring to the people who invested in LSI, well lets examine it.
If someone had bought 100 shares of LSI in January of 1995 when it was trading at around $10/shr (split adjusted), today (after all the idiotic sell off and all the noise made by the con artists of the Wall Street known as the Analysts) it would be worth $32/shr. So lets say you invested $1000 in LSI in January of 1995. Today that $1000 would be worth $3,270. That is about 227% gain. On an annual basis that is about 25% return every year accumulated to the previous years gain (i.e. you start with $1000 on the first year and then add 25% to it every year for 5 years. So after the first year the total investment would be worth $1,250, the second year $1,562.50, and so forth.)
I was not aware of the fact that T-bill's return for the past 5 years on an accumulative basis annually has been 25%. Or perhaps I am missing something in which case I appreciate it very much if you would please show me how to go ahead and invest in the T-Bills paying 25% interest every year. I would be out of my mind not to take all my money out of not only LSI but practically every other high tech stock I own and direct it all into such T-Bills.
Regards,
- Addi |
