In the last 14 years Dell has been a remarkably bad investment.
Over this period of time hundreds of millions of people around the world have bought computers and Dell shareholders have managed to benefit from this secular trend to the tune of 0% returns. The stock today is trading at 1998 levels.
That really sucks. If I was a Dell shareholder I would be annoyed.
Dell: 14 Years and 0% Return
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Dell: 14 Years and 0% Return
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Re: Dell: 14 Years and 0% Return
But I thought stocks were the only investment you needed to own in a portfolio and were less risky the longer you held them?
BTW. Not to pick on my alma mater Cisco. But their share price has done about the same.
BTW. Not to pick on my alma mater Cisco. But their share price has done about the same.
Last edited by craigr on Tue May 22, 2012 4:07 pm, edited 1 time in total.
Re: Dell: 14 Years and 0% Return
Although over the last 20, neither has been too shabby (looks like about 35% and 33% CAGR -- but those first 8-10 years were more like 60% CAGR, a sure sign that future returns would have to be much lower, and should give today's Apple investors pause).
Last edited by kka on Tue May 22, 2012 8:46 pm, edited 1 time in total.
Re: Dell: 14 Years and 0% Return
What? You mean that buy and hold didn't work? I thought that was the holy grail?
Craig, I'd be curious to hear more about your background and how you got so smart. :)
Craig, I'd be curious to hear more about your background and how you got so smart. :)
Last edited by Reub on Tue May 22, 2012 9:00 pm, edited 1 time in total.
Re: Dell: 14 Years and 0% Return
I tend to think that buy, hold, diversify and rebalance is the holy grail!Reub wrote: What? You mean that buy and hold didn't work? I thought that was the holy grail?
I think this quote (attributed to many) summarized it best:Craig, I'd be curious to hear more about your background and how you got so smart. :)
"I am a great believer in luck, and I find the harder I work, the more I have of it."
Last edited by craigr on Wed May 23, 2012 2:15 am, edited 1 time in total.
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Re: Dell: 14 Years and 0% Return
In hindsight (always 20 20 vision with hindsight) it is apparent that much of what Dell does went from revolutionary to commodity in a terrible hurry.
This is why I am not a stock picker.
This is why I am not a stock picker.