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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 168.060.0%Dec 1 3:59 PM EST

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To: Another John who wrote (30629)5/23/1999 11:35:00 AM
From: Ramsey Su  Read Replies (1) of 152472
 
John,

If you take a long term 5 to 10 year view, does the market volatility on a given day or week really matter?

Absolutely. ESPECIALLY IF YOU TAKE A LONG TERM 5-10 YEAR VIEW.

Most people take these wall street cliches at face value and never bother to think. A most common one is something like "based on MSFT price today, does it really matter whether you paid $5 or $8 for it 6 years ago?"

The most common answer would be no but if anyone actually thought about it, the answer is an absolute yes.

Just think about it in terms of dollars, which is what you have to invest with. $40 will buy you 8 shares at $5/sh or 5 shares at $8/sh. You blow that out 5 - 10 years and see what you come up with.

Take QC as an example, based on recently volatility and an investor with $10,000 to initiating a new position. Some might have bought at $110 and some at $100. Compound that over 5 - 10 years and you will see the significance.

Ramsey
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