Here's a look at IBM's ($IBM) stock compared with Microsoft's ($MSFT). This is a race that hasn't gone the way many people would have thought.
If you had asked most experts on December 31, 1999, which is a better buy"”IBM or Microsoft, I'm pretty sure the majority would have sided with Microsoft. Instead, IBM has won the contest hands down with an 88% gain compared with a 47% loss for Microsoft.
If we were to measure from Microsoft's IPO in March 1986 until the end of the century, that's a very different story. Microsoft would have won with a 600-fold gain to IBM's triple. Over most of the last ten years, Microsoft's stock has been flat. IBM has been an especially strong stock in the last three years.
The lesson here is that companies left for dead can turn themselves around, while companies that have seemingly won the race can quickly lose their edge.
Posted by Eddy on April 16th, 2012 at 11:17 am
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
Tickers: ibm, msft
Named by CNN/Money as the best buy-and-hold blogger, Eddy Elfenbein is the editor of Crossing Wall Street. His free Buy List has beaten the S&P 500 for the last five years in a row. (more)
This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities.Disclaimer | © Copyright 2012 Crossing Wall Street.
Read Full Article »