This story is making the rounds at NT...=========================================On July 26, 2000, two friends, Jim and John, each got a $1000 bonus at work.(They both work for Nortel Networks, where in the summer of 2000, there wasLOTS of money around for bonuses). Jim, being an intelligent, financiallyconcientious person, put the whole $1000 into Nortel Networks stock. Withhis $1000, and the transaction cost of $35, he was able to purchase 7 sharesat $123 each. Having watched the Nortel stock climb and climb, he felt verygood about this investment, happy that he is preparing for the future. John, being a more care-free sort, did something slightly different with his$1000. John borrowed a friend's truck, and proceeded to the Beer Store,where he purchased 33 cases of beer. John also felt very good about hisinvestment: 33 cases x 24 = is 792 bottles of beer! John, also being anintelligent guy, although perhaps not as forward-thinking as Jim, calculatedthat he could drink about 15 bottles per week, and he wouldn't have to buybeer for a whole year. Jim, of course, was appalled by John's purchase, and berated him constantlyabout it. As months went by, Jim excitedly watched the stock prices, and sawit start to dwindle. "It'll go back up", he'd say to Jim. Jim, who has beenreaping the benefits of his investment on a daily basis, would reply, "Ya,it will. Hang in there buddy <burp>". Months went by, and the value of the stock continued to fall, and there wasthe beginnings of a noticeable dent in the beer pile. Midwinter came, Jim's stock had fallen to about half of it's originalvalue, and John's beer was about half gone. Jim, being sure that the stockhad hit rock-bottom, still was berating John for his frivolous purchase,telling him "Your beer will be gone in six months! Who knows what my stockwill be worth!!". Well, summer has come, and hard times at Nortel continue. Bad news: BothJohn and Jim have been affected by the layoffs. Last week, in order toraise some cash to help through the rough time, Jim sold his 7 shares, atthat day's value of $12, and got $84, then after paying the $35 transactionfee, he only had $49. Jim stopped by John's house later that day (everyone needs their friend'sduring rough times), and as luck would have it, there were two bottles ofJohn's beer left. John, being a good, compassionate friend, offered toshare his last two bottles of beer with his friend. Jim appreciated thegesture, and enjoyed the cold beer on the hot summer's day, but he felt abit guilty. "At least I got fifty bucks back out of it - you have nothingnow.", he said. "That's ok.", replied John. "Perhaps you can help me, I needto return all these empties.", he added as his other friend with the truckpulled in. So, they loaded up the truck, and proceeded off to the beerstore. Upon arrival at the beer store, they unloaded the empties, feeling a littlegrim. John went to the counter, and collected his refund for the bottles."33 cases x 24 bottles, at 10 cents per bottle, that comes to $79.20", thefriendly Beer Store clerk said to John as he handed him the money. Jim wasspeechless. Poor guy. Can you imagine how you would feel if you justdiscovered that over the course of the last year, your $1000 stockinvestment left you with $50, and taking same 1000, buying beer, anddrinking it, would leave you with $80. I'll leave it up to the reader tocome up with they're own "moral to the story". Have a nice day, and happy investing.
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