Making The Big Bucks

It’s funny to me how the exact same actions can result in wildly disproportionate outcomes depending on the circumstances that surround it. One stock-market example of this is the price you pay to acquire your ownership position in a given stock.

Let’s say you read the annual report of General Electric stock and concluded that it is a company worthy of a $25,000 investment.

If you made that decision in 2010, you paid $15 for each share of the stock. You would own 1,670 shares of the stock.

If you made that decision in early 2015, you paid $25 for each share of the stock. You would own 1,000 shares of the stock.

Ignoring, for this exercise, the added dividends that would have been collected from owning GE between 2010 and 2015, the entire future of these investors would have been quite different simply because of the time at which … Read the rest of this article!