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 : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (80267)	9/13/2000 9:23:49 PM
From: 16yearcycle	Read Replies (2) \| Respond to of 152472

Calculating the compounding difference over 5 years should show any reasonable person that trying for 55 instead of 60 is ridiculous. If qcom rises to 500 in the next 5 years, Jacob will have a 55.45% annual return if he buys at 55, or a 52.85% annual return if he buys at 60. Even if you were the unfortunate one who bought at 200, and Qcom is at 500 on 1/3/2005, you still would have achieved a return of 20% compounding.

To: Uncle Frank who wrote (80267)	9/14/2000 2:40:21 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 152472

Yes, that's the risk I'm taking. I risk being out of a stock that I think has a great future, in order to try and get a lower cost basis. And, you are right, the potential is only for a 10-20% reduction in my cost basis, not an order of magnitude. However, in my experience, investors who say, "I have to own this stock, its future is so good, I'll just ignore valuation", usually end up paying too much for it. Lots of QCOM investors on this thread have that attitude, and some of them have a triple-digit average cost for the shares they hold. I went back and read some of the posts from last January, and some people (no names, so as not to embarrass them), were buying out-of-the-money calls then. And some were smart or lucky enough to get in at a single-digit cost basis 2 years ago. More than any other stock I'm following, QCOM has a very wide range of prices at which investors got in. The best part of my method is that, if I'm wrong, I've only lost opportunity, not money. And I know I'm going to be wrong in a not-small proportion of my guesses.