Tuesday, July 22, 1997
Taking My Own
Advice
by
[email protected]
Some time in the mid-1980s, when I was younger and much Wiser than today, I gave my niece and nephew each one share of stock. To my niece went one share of Apple Computer, worth about $30. She was thrilled! To my nephew went one share of Intel, worth about $40. He was disappointed, having never heard of the company.
Recently, while arranging to attend the baptism of my nephew's triplets, I asked my sister if her children still had the stock. Indeed they did. My nephew had just received a certificate in the mail for 12 shares of Intel. The stock had just split 2 for 1, so he now had 24 shares. That $40 gift was now worth over $2,000. The share of Apple had fared less well, unfortunately, and the one or two shares were worth little more than I paid for them.
Around the same time that I gave this gift, my aunt retired from AT&T with $90,000 of Bell System stock. She told me she wanted to sell the stock and use the money for some projects. I advised her to hold the stock, and use the flow of dividends for her purposes. She did, and the stock has since grown to an unknown but undoubtedly huge amount.
I wish I had followed my own advice in those days. Had I not thrown away tens of thousands of dollars on stock index options and gold coins, and instead invested in solid stocks for the long term, my net worth would be twice what it is today. Fortunately, I am now back on the wagon and I drive the Foolish road into the future.
Larry Geary