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onenote

(44,921 posts)
17. Right. And the folks that bought and held on aren't panicking
Wed Jan 29, 2025, 07:26 PM
Jan 29

A real life example from a relative that bought 100 shares in August 2016 @$61.340per share -- a $6134 investment.
Over the next five years, the stock price climbed, hitting $800 per share in July 2021 = $80,000 on that investment of $6134
At that point, the stock split 4:1 and the price dropped to $195/share for what was now 400 shares. The initial share price after the split declined slightly, reducing the value of his holdings to $78,000. But the stock climbed again, hitting $1100/share in June 2024 -- leaving him sitting on $400,000 worth of stock. Then came the 10:1 split. The 400 shares became 4000 shares. The initial stock price post split was $117, increasing the value of the shares to $468,000, still having only spent $6134. The price has fluctuated since then, peaking at $138.50 in November, giving him a $554,000 stake. Even with this week's drop to $123.7 as of today its s till worth $494,800 -- not a bad return on $6134, even over 9 years and even with a paper loss of $58,000 since November.

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