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Politics : Formerly About Applied Materials
AMAT 242.41+5.0%Nov 25 3:59 PM EST
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To: Gottfried who wrote (41062)12/21/2000 11:56:19 PM
From: Ian@SI  Read Replies (1) of 70976
 
This has gotten totally out of hand. It's time to step away
from the tongue in cheek answers and take a serious stab at
it.

1. You started with money.
2. You chose to exchange that money for a part ownership in
a company rather than a loaf of bread or part of a house or
some other use for the money.
3. Your part ownership in the company is valued at the margin: whatever the current high bidder is willing to pay
for it at the specific point in time you decide to sell.

4. Your part ownership in most growing companies tends to
get diluted over time. e.g. for AMAT:

(in millions)
                                12mos(4)*
                                           1999
                                                  1998
                                                         1997
                                                                 1996
                                                                        1995
                                                                                1994
Shares Outstanding(millions)
                                 811.135
                                         765.332
                                                735.728
                                                       734.500
                                                               720.940
                                                                      717.112
                                                                              672.832


Short of a deep pocketed acquirer, Market Cap is usually not
an indicator of what the going rate would be if all
shareholders decided to sell at the same time.

So you either have money; or you have used the money to buy
something; in which case you have the "something", not the
money. A few months later, if you bought bread, it's
probably not going to be worth very much. Sometimes, that's
also true with part ownerships in companies. :-(

But money heaven, hell and purgatory made a much nicer
story. ;^)

Happy holidays,
Ian.
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