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Can't read the article, but for context Intel's share price never recovered from the "dot com" bubble of 2000: https://www.tradingview.com/chart/?symbol=INTC h

Can't read the article, but for context Intel's share price never recovered from the "dot com" bubble of 2000: https://www.tradingview.com/chart/?symbol=INTC https://www.tradingview.com/chart/?symbol=INTC It's one of a few large companies with that distinction. Shares now offer a (relatively) regal 5.3% dividend yield and a price/earnings ratio just above 5. Of course, as profits dwindle, both metrics will be recalibrated downward. This seems relevant because during the late 1990s Intel was allegedly the company whose shares one bought and never sold. I could name a couple of those whose positions today are argued to be equally ironclad.

JumpCrisscross 4y ago
> Intel's share price never recovered from the "dot com" bubble of 2000 As you observe, this is true only if one ignores dividends, which are a material component of total returns for a mature company like Intel. > during the late 1990s Intel was allegedly the company whose shares one bought and never sold This has never been true for any public company. And it’s driven by investor style more than company fundamentals.
- colinmhayes 4y ago
  > This has never been true for any public company. Not really true. Most billionaires utilize the "buy, borrow, die" strategy of borrowing against their holdings instead of selling to get around taxes. As long as the equity increases in price more than inflation you come out ahead, plus save the 20% on taxes. Then when they die their capital gains are reset so no taxes ever paid.
- pixelbeat__ 4y ago
  Even with dividends reinvested, $INTC gave zero real returns from Dec 1998 to now, and a net loss if invested after July 2014. Also $AMD now has a larger market cap, and $NVDA is 3 times larger! An amazing decline. https://totalrealreturns.com/s/VFINX,VBMFX,USDOLLAR,INTC?start=1997-01-01 https://totalrealreturns.com/s/VFINX,VBMFX,USDOLLAR,INTC?sta...
skippyboxedhero 4y ago
> It's one of a few large companies with that distinction Because the rest went bankrupt.
01100011 4y ago
I believe this shows total returns for Intel(i.e. including dividends): https://stockcharts.com/freecharts/perf.php?INTC https://stockcharts.com/freecharts/perf.php?INTC The picture is better, but not great. Folks who bought at the peak of the bubble would have needed to hold for about 18 years to break even.
nostromo 4y ago
> Shares now offer a (relatively) regal 5.3% dividend yield US treasuries are nearing 4% and are risk free.
astrange 4y ago
Remember, if you're buying someone's selling. (Which might be the company itself.) And your dividend % is before tax, so compare to tax-free bonds.

JumpCrisscross 4y ago

> Intel's share price never recovered from the "dot com" bubble of 2000 As you observe, this is true only if one ignores dividends, which are a material component of total returns for a mature company like Intel. > during the late 1990s Intel was allegedly the company whose shares one bought and never sold This has never been true for any public company. And it’s driven by investor style more than company fundamentals.

colinmhayes 4y ago
> This has never been true for any public company. Not really true. Most billionaires utilize the "buy, borrow, die" strategy of borrowing against their holdings instead of selling to get around taxes. As long as the equity increases in price more than inflation you come out ahead, plus save the 20% on taxes. Then when they die their capital gains are reset so no taxes ever paid.
pixelbeat__ 4y ago
Even with dividends reinvested, $INTC gave zero real returns from Dec 1998 to now, and a net loss if invested after July 2014. Also $AMD now has a larger market cap, and $NVDA is 3 times larger! An amazing decline. https://totalrealreturns.com/s/VFINX,VBMFX,USDOLLAR,INTC?start=1997-01-01 https://totalrealreturns.com/s/VFINX,VBMFX,USDOLLAR,INTC?sta...

skippyboxedhero 4y ago

> It's one of a few large companies with that distinction Because the rest went bankrupt.

01100011 4y ago

I believe this shows total returns for Intel(i.e. including dividends): https://stockcharts.com/freecharts/perf.php?INTC https://stockcharts.com/freecharts/perf.php?INTC The picture is better, but not great. Folks who bought at the peak of the bubble would have needed to hold for about 18 years to break even.

nostromo 4y ago

> Shares now offer a (relatively) regal 5.3% dividend yield US treasuries are nearing 4% and are risk free.

astrange 4y ago

Remember, if you're buying someone's selling. (Which might be the company itself.) And your dividend % is before tax, so compare to tax-free bonds.