Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Captain Jack who wrote (43182)	4/24/2000 12:55:00 PM
From: rudedog	Respond to of 74651

Jack - Ballmer's biggest play on MSFT stock was back in July of 1987, when he borrowed more than 50% against his existing MSFT stake, and used the proceeds to buy more MSFT, taking his total from less than $100M to over $145M. The stock price had dropped a bunch, and Ballmer wanted to show his confidence in the company. Those shares are now at a basis of about 5/8... the story made the front page of the WSJ at the time. In the early 90s, there was a follow-up piece in the WSJ when the value of Ballmer's stake went over $1B. That article pointed out that Ballmer had not sold that original position, but had instead done long-term borrowing against his stock position to take down the margin. One assumes that he closed out that original $45M debt at some point...