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


To: Deliveryman who wrote (19608)4/2/1999 9:12:00 PM
From: Sir Francis Drake  Read Replies (1) | Respond to of 74651
 
Actually, one should speak of EFFECTIVELY the same number of shares. It really doesn't matter what the number is - what matters is how much the shares are worth collectively. After all, when they split - they issue more shares... even though they don't put out more money for them!

Take this example: MSFT buys back all the shares - presumably, in the process they bid up the price, but this is not material - except one.

So now you have ONE share worth $500 billion (not that much of a stretch, if you consider BERK.A<g>). For this one share to double, it still needs to reach $1 trillion. The math is the same.