TELECOM Digest OnLine - Sorted: Long-Term AT&T Investors

Long-Term AT&T Investors

[Welcome back, PAT!]

We've all heard that AT&T was once (perhaps still is) the most
widely-held stock in the United States. Most of us probably know
someone who bought AT&T stock long before the breakup and then never
touched it. Every so often you'd hear reports about how good an
investment this turned out to be. I was curious to see if I could
replicate this myself, following the history of Mother and her babies
from 1970 to the present day.

My results suggest a somewhat different picture. Adjusting for
inflation, that investment would today be worth today about what you
paid for it in 1970. I suspect this is because most such analyses
assume reinvestment of dividends, whereas I assume the contrary. (I
had to make this assumption in order to finish this project in a
single evening.)

You can find my analysis at <http://khavrinen.csail.mit.edu/t.html>.

Garrett A. Wollman | As the Constitution endures, persons in every
wollman@csail.mit.edu | generation can invoke its principles in their own
Opinions not those | search for greater freedom.
of MIT or CSAIL. | - A. Kennedy, Lawrence v. Texas, 539 U.S. 558 (2003)

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