Thread: Investing 102
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Old 04-07-2016, 05:33 AM
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GregWeld GregWeld is offline
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Quote:
Originally Posted by SSLance View Post
I was a working kid in college in 1986, a thousand dollars to me back then would have felt like a million dollars!!

Great example though Greg.


LOL -- RIGHT!!!


I just thought it was a great example of kind of a "ho hum" stock pick.. Which - when "charted" - was kind of an eye opener. The whole post was more about - HEY!! Think how simple something like this is - and look at the result. What made the result was, TIME.

In 1986 Microsoft had just gone public. Gwen was one of three or four people in Human Resources there. She got 750 shares of stock as an "option". At the time - the shares traded at around the $30 level - and the option price was $32.50 ---- what would those 750 shares be worth today? The "cost" of the option is $24,375.00 ---- and the growth since inception is 54,582 PERCENT.

I just did "head math" - taking the 750 shares - and doing all the SPLITS - quickly - the 750 shares grew into 288,000 shares - at todays price - your 24 grand would be worth over 15 MILLION. Just barely enough to retire on. LOL
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