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.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (50561)	3/1/2002 4:41:07 PM
From: Bruce Brown	Respond to of 54805

Return percentage isn't the dominant metric for judging long term holds. If you bought 10,000 shares of Cisco at .50/sh in 1991, it would be worth $148,400 today and you would have a return of 2,868%. Let's work through that formula so that it is a little more accurate. Start with 10,000 shares of Cisco at 50 cents a share (cost basis adjusted). Actual price at the time would have been $64.50 per share. 10,000 X $64.50 = $645,000 cost basis What about splits? 18-Mar-91 [2:1] = 20,000 shares 23-Mar-92 [2:1] = 40,000 shares 22-Mar-93 [2:1] = 80,000 shares 21-Mar-94 [2:1] = 160,000 shares 20-Feb-96 [2:1] = 320,000 shares 17-Dec-97 [3:2] = 480,000 shares 16-Sep-98 [3:2] = 720,000 shares 22-Jun-99 [2:1] = 1,440,000 shares 23-Mar-00 [2:1] = 2,880,000 shares 2,880,000 X today's closing price of $15 = $43,200,000.00 $43,200,000 - $645,000 = $42,555,000 pre-tax capital gains for a 66 bagger View Cisco on that time frame alongside Intel and Microsoft: finance.yahoo.com BB

To: Uncle Frank who wrote (50561)	3/1/2002 10:58:37 PM
From: Matt Brown	Read Replies (1) \| Respond to of 54805

You go boy. Message 17136710

To: Uncle Frank who wrote (50561)	3/3/2002 1:30:16 AM
From: rushnomore	Respond to of 54805

Return percentage isn't the dominant metric for judging long term holds. If you bought 10,000 shares... I was discussing this exact point with my wife the other day, trying to explain why I wasn't overly interested in buying into a stock at the lowest point. But this argument only holds water if your plan is to buy a specific number of shares of a given stock and hold them for a while. On the other hand, if your plan is to invest a specific number of dollars in that same stock, then entry price could make a large difference in the number of dollars that you take to the bank when you sell. The difference is all in the question of what is limiting your original stock purchase: the number of shares that you want to hold or the number of dollars that you can use to buy.