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

To: ahhaha who wrote (7660)	3/11/2006 4:26:45 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 24758

Ahahaha, you are sliding like a crab. Fortunately, your comment is recorded in cyberspace and even amazingly godlike professors of emeritus get things wrong. You said you have to sell an investment to make money. I gave you a simple example where your idea is obviously not true. You can say it was luck, or that there were other investment opportunities or that the yield isn't that great [30% now and pretty certain to continue and increase for the next decade at least] takes care of the carrying cost from 1994 until now. You are right that right now I haven't earned more from my QCOM investment than I would have done in a compounding savings account. Oh, hang on, that probably isn't even right as interest rates were as low as 1% for the last few years. They were only about 4% in the 1990s for small-time depositors. But whatever the trivial details of that, the dividends are almost certain to continue for at least a decade. 3G has barely got going and profits are flooding in by the $billion. I only need to go another 2 years and I've got all my money back, including allowance for inflationary deflation and the opportunity cost of compounding interest in a savings account. But you are confused about the risks of QCOM vs savings account. Most people are. They think the USD is a risk-free investment. They are wrong. The USD is sure to go to zero [or near enough to it]. My guess is that it will take about 20 years to do so. It might take only 5 years. A week is a long time in politics. In fact, QCOM, combined with a wide range of other companies, is a much less risky investment than the USD. They will almost certainly NOT go to zero. The USD will definitely go to zero. I haven't met Mr Thrasymachus but he sounds like an old Greek and I doubt he's up with modern financial relativity theory. <Also, I've made and have one helluva a lot more money investing the way I define it than you have through your savings equivalent. That makes you wrong and me right by the Principle of Thrasymachus.> Not to mention, you haven't said just how vast a fortune you have made and I don't recall telling you about my Tonka Truckload of loot. I admit that I have made a LOT more money by selling various assets at much higher prices than I paid. You have no doubt made much more than my dividends too by buying sheep and selling deer. But that doesn't make your original wrong comment right. In not many years, I will have made vastly more than your pathetic pittance from my dividends. Then, I might even sell the shares when QCOM has a market capitalisation of $1 trillion. I noticed the other day that $ill Gates and Warren Buffett seem to be doing okay with investments. Has $ill sold all or some of his MSFT? Did Warren take up your trading strategies instead of his boring old savings approach? $ill isn't a professor and neither is Warren. $ill didn't even finish university. Universities are full of spivs talking their socialist books, bludging on taxpayers. The profs think they are the elite, but $ill has more money. I think they are envious, even if they do know a lot about econometrics. They make the theories but $ill makes the money, and therefore the economy, that they then construct theories about. I have no idea what my risk was in QCOM. Neither do you. It was apparently no risk as the fact is they succeeded. If I'd held cash, I'd have been carrying a risk too, that the USD or NZD would implode and have their true values recognized. And, I'd have been guaranteed to suffer continued dilution, temporarily concealed by Made in China prices. While I have suffered some stock option dilution, that's just part of the pay for those who created the vast value. With investments, one is never sure how much is luck and how much is smarts. Most people flatter themselves that they were smart. But if you take 1000 monkeys choosing buy or sell for shares, half will get it right each time and half wrong. After 10 trades, one monkey will have been right every time and he will think he's the smartest investment monkey in the jungle. But he's still an ignorant monkey. He might even get another 10 guesses right. And be a monkey billionaire if he bet the lot each time. You don't have to sell an investment to make money. Sometimes you do, but it's not necessarily the case. Dividends are paid by many companies. Especially now that the tax penalty for doing so has been reduced. Warren Buffett, me, and $ill seem to be doing okay. MSFT has paid dividends too I believe. Mqurice