In God We Antitrust, from the Netly News
Dr.Dimitri Vulis KOTM
dlv at bwalk.dm.com
Fri Jan 9 17:31:08 PST 1998
Tim May <tcmay at got.net> writes:
> AMD is now trading at $18. Five years ago it was trading at the same price.
> In fact, it's been a narrow range between about 20 and 30 for most of that
> time, briefly blipping up to 40 before dropping back to the level it was
> half a decade ago. In fact, it's where it was in 1983, 15 years ago. (Check
> the charts.)
>
> Meanwhile, Intel has moved from $15 to $72 (today's price) in 5 years, and
> from something like $2 (or less, as the charts don't go back to '83 for
> Intel), up a factor of 30 or more times.
This is not the way to compare 2 stocks. Let me illustrate this with
a numericl example.
Stock A has been trading at about $10 for the last 10 years. Every year
it paid $5 in dividends. (OK, so why is it to fucking cheap)
Stock B has appreciated from $10 to $20 over the last 10 years.
Which has better total returns?
---
Dr.Dimitri Vulis KOTM
Brighton Beach Boardwalk BBS, Forest Hills, N.Y.: +1-718-261-2013, 14.4Kbps
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