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SyndicateTwo

12/17/06 1:09 PM

#2022 RE: dapro #2020

I think you're right. I wasn't calculating the exponential effect of multiple splits. If the float over 10 years goes from 580 mill shares to 5 billion like most big cap NDX stocks like CSCO or INTC, then eventhough that's a split of 4 or so times, that will turn 1000 shares into:

1 split = 1000 to 2000
2nd split = 2000 to 4000
3rd split = 4000 to 8000
4th split = 8000 to 16000


So, if the stock just stayed where it is, a $20,000 investment would turn into $320,000, or a 1,600% return. But since the price won't stay static, you'll see a much better return. Most likely well over 5000%.

See the power of long term investing in specific stocks.