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Politics : Formerly About Applied Materials
AMAT 268.72+1.3%Dec 3 3:59 PM EST

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To: Proud_Infidel who wrote (50762)8/17/2001 8:32:38 PM
From: Jerome  Read Replies (1) of 70976
 
The problem with that brief analysis is that assumes a whole lot more than investors realize.

From poster Dippy:.....
"I just read that the recent losses on the Nasdaq (over the past one year or so) have wiped out ALL of the gains
made since September 1995 (when the Nasdaq stood at 1050). It is almost as if the intervening years never
happened! "

The assumption is that an investor owned all the Nasdaq stocks in 1995 and held all the Nasdaq stocks until now. That would be a very large portfolio even if it was one share of every listed Nasdaq stock.

I think that a strong case could be made that when AMAT was at 110 and now is at 45, no wealth was either created or destroyed. (as long as the stock was not sold) To my way of thinking fluctuations in stock prices are like energy stored in a battery. The amount of energy in a new battery you buy for your car is a constant and does not change until it is used. Once you start using it the values all change. This is where investors who say 'I buy and never sell" are like the battery buyers.

So the long term B&H types should not complain( about the stock prices)........they still have new batteries, ready when they are.

Regards, Jerome
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