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Technology Stocks : All About Sun Microsystems
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To: Stock Farmer who wrote (42009)3/14/2001 12:09:02 PM
From: Prognosticator  Read Replies (1) of 64865
 
How did this apply to your specific SUNW situation? We can even forget the benefit of hindsight. Here you were looking at a price of $60 on a stock you bought at $6 three years ago. A high average return of 15% for 10 years would give you just under $25 in 2007

If I wanted an average return of 15% I'd invest in a company growing at 15% in a market growing at 15%. The Internet has been growing at 100% per year for the past three years, and SUNW has been averaging above 30%. The Internet growth will resume soon, but not at those levels, and SUNW will take a large part of it from their bumbling competitors.

But my failure to sell was caused by two things: indecision and taxes. The capital gains tax on any sale of stock, for me, works out to be about 40% (29% federal, 9 %state). So holding for the long-term is most usually the best strategy. The number of times a market index has dived by 60% in one year can be counted on the fingers of one finger.

I hope not to repeat this mistake again, but I don't think somehow I'll be given the opportunity to make it. Meanwhile, I'm rectifying the biggest mistake I made when I starter investing, and that was not being heavily enough invested. So I'm thankful that the stock market has come down to reasonable valuations again, not sorry. I'm thinking like an investor, and I have no fear.

P.
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