Investing 102

[toy71camaro]

Originally Posted by CRCRFT78

Coke has been on my "buy" list for a while, I'm just wondering if there was a way to benefit from the split. Either way I'll pick it up.

Same here... have had my eye on it for a while now, just saving up the $ to the price point that i want to make purchases at ($1k for me).

Im curious as well, if its worth jumping into before, or like previously mentioned, wait til August before jumping back into the market... either way, long term, it probably wont make a HUGE difference, but could be a subtle difference down the road.

[GregWeld]

Originally Posted by toy71camaro

Same here... have had my eye on it for a while now, just saving up the $ to the price point that i want to make purchases at ($1k for me).

Im curious as well, if its worth jumping into before, or like previously mentioned, wait til August before jumping back into the market... either way, long term, it probably wont make a HUGE difference, but could be a subtle difference down the road.

LONG TERM it makes about zero difference.... here's what does make a difference --- BEING OUT OF THE MARKET.

It's a proven numerical fact that GAINS in the market are only actually made a few DAYS in any given year -- the rest of the year it moves two forward - one back - three back - two forward.... BUT a couple times a year there are nice big PERCENTAGE moves and if you're out on those days - you've lost the largest percentage for that particular year.

Coke has split 10 times since 1919.... do the math of how many shares you'd have starting with ONE share in 1919... and splitting 2 for 1 ten times - and now once again so 11 times....

1

2

4

8

16

32

64

128

256

512

1024

2048

And this last time


4096


None of us would have lived that long -- but it begins to be the law of large numbers --- do the math had you bought 100 shares back at 256 !

[GregWeld]

Okay -- but here's the REAL splits for Coke since 1919.... so my math is TAME compared to the actual numbers!


The Coca-Cola Co. is seeking its first stock split in 16 years. Here's a look at the beverage maker's 10 other stock splits in history, along with the price of the stock before the split.

1919 – Shares begin trading at $40 per share.

1927 – 2-for-1 split – $199.50

1935 – 4-for-1 split – $290

1960 – 3-for-1 split – $153.75

1965 – 2-for-1 split – $146.50

1968 – 2-for-1 split – $155

1977 – 2-for-1 split – $73.75

1986 – 3-for-1 split – $117

1990 – 2-for-1 split – $76.75

1992 – 2-for-1 split – $82.88

1996 – 2-for-1 split – $81.75

2012 – Coke seeks 2-for-1 split. Shares closed at $74.12 Tuesday

[96z28ss]

Originally Posted by GregWeld

Okay -- but here's the REAL splits for Coke since 1919.... so my math is TAME compared to the actual numbers!


The Coca-Cola Co. is seeking its first stock split in 16 years. Here's a look at the beverage maker's 10 other stock splits in history, along with the price of the stock before the split.

1919 – Shares begin trading at $40 per share.

1927 – 2-for-1 split – $199.50

1935 – 4-for-1 split – $290

1960 – 3-for-1 split – $153.75

1965 – 2-for-1 split – $146.50

1968 – 2-for-1 split – $155

1977 – 2-for-1 split – $73.75

1986 – 3-for-1 split – $117

1990 – 2-for-1 split – $76.75

1992 – 2-for-1 split – $82.88

1996 – 2-for-1 split – $81.75

2012 – Coke seeks 2-for-1 split. Shares closed at $74.12 Tuesday

"If the latest proposed split is approved, the company noted that a single share purchased in 1919 for $40 would be worth more than 9,000 shares and $341,545. If dividends were reinvested annually, the share would be worth $9.8 million.

Huge difference in the amount it's worth with the reinvested dividend. The power of compounding is amazing.

[GregWeld]

Originally Posted by 96z28ss

"If the latest proposed split is approved, the company noted that a single share purchased in 1919 for $40 would be worth more than 9,000 shares and $341,545. If dividends were reinvested annually, the share would be worth $9.8 million.

Huge difference in the amount it's worth with the reinvested dividend. The power of compounding is amazing.

And there is the $64 million dollar answer to why you shouldn't be very concerned about when to get in.... JUST DO IT!

[GregWeld]

Kinder Morgan Partners (KMP) went EX dividend today -- so when you check the share price - it's DOWN - but it went ex $1.20 per share...

I'll take that $1.20 per share thank you very much!

[96z28ss]

Originally Posted by GregWeld

Kinder Morgan Partners (KMP) went EX dividend today -- so when you check the share price - it's DOWN - but it went ex $1.20 per share...

I'll take that $1.20 per share thank you very much!

Obviously not a big deal to you but that would mean an extra $86 for me.

Newbie question here. If the dividend is reinvested do I still pay a brokerage fee for buying that 1 stock? so would it be better to save a years worth up then buy more.