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To: Ramsey Su who wrote (30633)5/23/1999 1:00:00 PM
From: Another John  Read Replies (2) | Respond to of 152472
 
Ramsey,

Not wishing to nitpick but on running the figures:

$10,000 invested at $100 and $110 and giving a future optimistic price of $400 per share at the end of 5 years

@ $100 a share ... 100 shares purchased.

@ $90 a share..... 110 shares purchased.

5 years on:

100 shares @ $400..........$40,000 = 31.95% pa

90 shares @ $400..........$36,000= 29.20% pa

A difference of 2.75% pa or 14.53% over 5 years.

Truly, if I could time my purchases better, it would make a difference of some magnitude over a long time frame, say 20 years, however I cannot time Mr. Market and am willing to pay up for good companies in very strong markets.

Beat wishes,

John