3 replies to this topic

[mcleert]

Ok-------the stats are true---------if you bought the dow and never sold-after the crash in 1987--- you would be up roughly 1500%. But who could buy the Dow in 1987. Not me-----there was no index fund available then. Only mutual funds that mimicked the dow. How many average investors could buy all the dow stocks ---and how much would that cost him-----I remember buying 100 shares of anything back then was $100-200---to process the transaction. Anyway----only the rich who bought and hold made the money. The average guy could not compete---------and this is still true today----rules have changed but the rich folks made the rules!!

[Rogerdodger]

Q:

But who could buy the Dow in 1987

A: Warren Buffet

The 80's went on with Berkshire increasing in value as if on cue, the only bump in the road being the crash of 1987. Warren, who wasn't upset about the market correction, calmly checked the price of his company and went back to work. It was representative of how he viewed stocks and businesses in general. This was one of "Mr. Market's" temporary aberrations. It was quite a strong one; fully one-fourth of Berkshire's market cap was wiped out. Unfazed, Warren plowed on.

I'll Take a Coke
A year later, in 1988, he started buying up Coca-Cola stock like an addict. His old neighbor, now the President of Coca-Cola, noticed someone was loading up on shares and became concerned. After researching the transactions, he noticed the trades were being placed from the Midwest. He immediately thought of Buffett, whom he called. Warren confessed to being the culprit and requested they don't speak of it until he was legally required to disclose his holdings at the 5% threshold. Within a few months, Berkshire owned 7% of the company, or $1.02 billion dollars worth of the stock. Within three years, Buffett's Coca-Cola stock would be worth more than the entire value of Berkshire when he made the investment.

[da_cheif]

carl berg has half the float of vlnc......annnnnndddd

http://messages.fina...%...tof=2&frt=2

[Russ]

Market Wizard Linda Raske bought the sp futures in 1987 as it was crashing and ended up the end of the day down a few hundred thousand i think, but she held on and made money. It is in the book Market Wizards.

Edited by Russ, 19 October 2007 - 08:40 PM.