Biotech Values

[Rocky3]

Performance has to be measured relative to the post-split basis of each successor company. ABBV’s post-split basis was 52.02% of the original company’s, while new-ABT’s post-split basis was 47.98% of the original company’s. I.e., ABBV's post-split basis was 8.4% higher than new-ABT's.

That is a pretty unique way of measurement (and in my view completely flawed, at least as to investors). The only way I have ever measured investment return is by stock price and total return. I prefer total return. As I said, ABT is closer to ABBV than it has been since the split up. But with ABT at 79.96 and ABBV at 80.64 earlier today, the total returns have been (without reinvestment of dividends):

171.6868% ABBV
168.0499% ABT

Annualized
17.4925% ABBV
17.2370% ABT

You may be right soon, but not yet. The bigger and better point is that both have been good investments.