Courtesy of Mish.
Anyone recall the logic in the 1960s and 1970s that suggested there were only 50 stocks one needed to look at, and those 50 stocks could never go wrong?
That theory was labeled the “Nifty-Fifty“.
Nonetheless, the long bear market of the 1970s that lasted until 1982 caused valuations of the nifty fifty to fall to low levels along with the rest of the market, with most of the Nifty-Fifty under-performing the broader market averages.
The “Nifty-Fifty” of the 1960s gave way to the “Four Horseman” of the tech era: Microsoft, Dell, Cisco and Intel.
Microsoft
Microsoft opened the year 2000 at $41.19.
It is now $53.85.
Congratulations, you are ahead, but it did take 14 years. Counting dividends, you are now well ahead.
Dell
Historically Dell last traded at $13.73 on 10/29/2013. It opened the year 2000 at $50.40. You are seriously underwater and will never catch up. Dell is now private.
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