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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (7649)	3/11/2006 2:14:59 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 24758

<What yield are you getting on QCOM? > I paid about $1.50 a share [average] split-adjusted. Dividends are now 12c a share per quarter, which is nearly 50c a year. So I'm getting a 30% yield. They also split off Leap Wireless International, at about $8 a share, which was considered a dividend and we sold that at $93 a share which was a handy return. It subsequently went broke. So, we have made more money from the "selling the investment" process than from the dividends, but dividends should keep coming for a couple of decades. Which should see me out. We could make a LOT more money than the dividends by selling the highly-priced shares at current prices and I might just do that. I am happy to take the money offered by greater fools, or, more politely, those who value the stock higher than I do. Leap Wireless seemed stupidly high in price to me. We did have to sell that to make money as it never paid a dividend. We don't have to sell QCOM to make money. We can own it three more years and we will have got all our money back and a lot more besides [not counting the Leap Wireless bit of luck - if they hadn't split it off, we wouldn't have got that money]. Anyway, the point was, you were wrong that you have to sell an investment to make money. Buying and selling can be called an investment, but it's more accurately speculation. Especially if the expected time of holding is short. I like to invest in new things, such as Globalstar, QUALCOMM, RoamAD, our son's business. They are higher risk, but a lot of fun and potentially hugely profitable. And very useful to people. When a business matures, like QUALCOMM, their returns eventually return to utility rates [like Ford, General Motors and cigarette companies] with P:Es of 10. The fun has gone out of them and they dabble with new chrome bumpers, more valves or different filters. Which isn't very exciting. Anyway, now you know you don't have to sell an investment to make money. We could put the QCOM shares in a trust and the investment could go on until QCOM eventually goes out of business, never having been sold by us. We and the trust could make a fortune from the investment, despite never having sold the investment. Mqurice [official international investment expert]