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

To: Wilson Picket who wrote (4527)	12/27/1997 5:48:00 PM
From: Bearded One	Read Replies (1) \| Respond to of 74651

Of course I simplified the model. But in response to your post: The taxes don't matter if you're doing this in your IRA. You can reinvest your dividends into bonds, essentially compounding them. The interest rate on a bond you purchase doesn't change, so the 6% is guaranteed for the next 10 years. Unlike a stock, you're guaranteed to get back your principal. Unlike a stock, as well, you actually know what the earnings are. By some accounting methods, Microsoft actually lost money last quarter. By others, it made lots of money. So there's all sorts of different details that can influence your decision one way or the other.