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

Re: Long-Term AT&T Investors

Garrett Wollman (wollman@csail.mit.edu)
Mon, 6 Mar 2006 02:06:59 UTC

In article <telecom25.90.3@telecom-digest.org>,
Ernie Klein <ecklein@pacbell.net> wrote:

> I purchased 100 shares of AT&T in 1962.

[...]

> As of Friday, 3/3/2006 the value of the shares (of the remaining
> companies, ACR, T, BLS, CMCSA, LU. Q, VZ & VOD) was $118,188.12.

You forgot NCR and AV, by the way.

If you bought your shares on January 2, 1962, you paid about $13,300
for them. In 2006 dollars, that corresponds to about $87,300 -- a
decent 35% return for you, even after the ravages of inflation, but
only about 1.27% on an annualized basis. (In the more conventional
way of presenting return on investment, which does not consider
inflation, that's a better-than-respectable 9.5%.)

Today, very few people reinvest dividends in stocks they hold directly
(although they very frequently reinvest mutual-fund distributions),
although most of Mother's dwindling offspring still offer such plans.
With a stock like AT&T which was a strong dividend-paying stock for
many years, it was obiously a big win for investors like Ernie.

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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