To: BBG who wrote (88533 ) 1/11/1999 1:39:00 PM From: Bill H Read Replies (1) | Respond to of 176387
Total return: 57,282%........ (from Kiplingers.com) The Nineties have been one of the best decades of the century for stocks, and nobody did better than Dell Computer's stockholders. Had you been among the fortunate who owned Dell shares when the decade began (and you steadfastly held on to them), you'd be sitting on a return of 57,282%--that's right, 57,282%--the result of compounding when a stock more than doubles year after year after year . . . You know Kiplinger's First Law of Investing--that past results are no predictor of future performance. But there's also Newton's First Law of Motion--that an object will keep moving on the same path until deflected by an outside force. So with the assistance of fund manager James O'Shaughnessy, we unearthed the highest-returning stocks of the 1990s and then asked analysts who follow the stocks' fortunes what they think about their prospects for the next three to five years. For the moment, these companies' futures look reasonably bright. On average, analysts expect each of them to rack up earnings gains of at least 22% a year over the next five years. A word of caution, though: With the run-up that these stocks have had, expect inordinately high price-earnings ratios in some cases. Earnings estimates are courtesy of Zack's Investment Research. Dell Computer Total return: 57,282% Now master of the mail-order-computer universe, Dell is the "poster child of the '90s bull market," says O'Shaughnessy, who manages O'Shaughnessy Cornerstone Growth fund. Had you invested in Dell at the start of 1990, you'd have reaped an annualized return of 107%-doubling your stake, and then some, every year. Dell is poised for further glory if notebook- and desk-top-PC sales continue to increase. A consensus of analysts predits 30% annual earnings growth over the next five years.