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FORBES
March 8, 1999
Page 53
DELL Comjputers spectacular rise from a split-adjusted $8 a share to $88 in the past two years has made more than a few millionaires, or "Dellionaires," as they are sometimes called. Besides founder Michael Dell, whose 14% state is worth $16.7 billion, it's hard to say just how many Dellionaires there are. But one of the biggest is La Jolla, Calif. stockbroker William B. Michaels.
Michaels, 67, says he turned a $2.75 million stake into $49 million worth of Dell stock over the past two years by using options, leverage, and a lot of guts.
"If you want to arrest me for portfolio concentration, come and get me," says the Oklahoma native, an unrepentant practitioner of the win-big, lose-big school of investing. Michaels and his wife control some 550,000 Dell shares purchased with a staggering $20 million in margin debt.
Michaels admits the bet looks foolhardy to some. Even brokerage executives have tried to talk him into selling. But like a lot of Dell fanatics, Michaels believes the PC maker has only begun to grow and will increase sales 45% to $26 billion this year.
"You don't look at price/earnings multiples," he says. "You look at what the future income stream is going to be. Then you take everything you've got, leverage it up your you-know-what, mortgage your dog, your wife, your house, put it all in Dell stock and sit down and relax."
Relax?
What a great job, William. Thanks for sharing your insight with other William Michael wannabees.
Best regards,
Mark A. Peterson |
