Quote:
Originally Posted by GRH
Still, I like the VERY long prospects on many of these companies...After all, 100 shares of MCD bought back in the 1960's for $2,250 would be worth $4.6 million today after all the splits and dividend-reinvests.
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I was just telling a friend the other day that right now...as bad as things seem...the economic downturn is actually a blessing for anyone who is young and just starting out. Heck, it's even good for anyone in their forties with retirement still 20 years out. Right now you can buy into sturdy companies at amazing prices. And as you said, GRH, so long as you approach this with a
long term prospect, there's no question that most companies and their stocks will rebound to one degree or another.
On Friday the big news was how Citibank had plunged to under $2 a share, and the running joke on TV was how their ATM fees were now worth more than a share of their stock. But Citibank isn't going anywhere. Hell, it's getting a government bailout. At $2 a share, even if it goes back to $4 you've doubled your money. Now imagine in 20 years it goes back to its highs in the 60, 70, 80 dollar range -- where you'd literally make 40 TIMES your investment.
So your analogy to MCD is correct. Right now, for the smart investor or for someone willing to spread some investment money around a little bit, they're going to wake up years from now with a big smile on their face.