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No. of Recommendations: 8
As of the close of the market today I have my first stock that's gone up 10 fold since I bought it. A high flying dotcom with no earnings? No. A tech high flyer like JDSU? No (though that's closing on 1000% for me quickly !). It's the very first stock I bought back in 1994 - Linear Technology (LLTC). At the time I had never heard of Motley Fool and had no idea I was buying something called a "Rule Maker". It just looked like a solid and steady growth company to me - with lots of proprietary products and nice net margins of 28%. I've just held it for the last 6 years, which hasn't always been easy. It's dropped 50% twice - once in 1996 and again in 1998; but the underlying business always looked solid, and in fact the net margins have risen during that time to a very impressive 38%. Today
LLTC was added to the S&P 500 and surged to $58, which looks very nice next to my split adjusted buy price of $5 3/4. I've seen LLTC listed a couple times in the Rule Maker column/board as an upper tier Rule Maker. I think it's rather pricey right now, but if it drops 50% again I think I'll buy some more.
Buy and hold ! - That's the ticket to long term success.
Thanks for listening - I just had to tell someone and my wife could care less about stocks I'm afraid.
rbrew
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No. of Recommendations: 0
I've seen LLTC listed a couple times in the Rule Maker column/board as an upper tier Rule Maker. I think it's rather pricey right now, but if it drops 50% again I think I'll buy some more. -- rbrew

rbrew,

Congratulations on taking the plunge and sticking to it. I've posted a few times trying to stir up some interest in Linear Technology, and I did the most recent (only?) RM analysis on the company. I've followed the company, basically since its founding, and have always been impressed with its technical capability as well as, more recently, its financial performance (still can't believe almost half of sales turns into profit). I'm an analog circuit designer, and so am particular interested in analog, or 'linear' circuit companies; I've only recently been an investor in individual stocks. I sure wish I'd bought 5 or 10 years ago, but finally bought LLTC in 1998. Remember when a P/E of 35-40 seemed high?

Like you, I held through the drop in 1998, and now have seen about a 4x return over 2 years. I don't know how much more gain we can expect over the near term, but I'm going to just hold; I can't imagine anything happening to the price of the stock that would convince me to sell. If something changes about the business, that would be another story, of course.

So, anyway, maybe the recent news about getting in the S&P 500 will get LLTC some more attention. Since sales are about $600M, we probably have a year or two until LLTC reaches the official RM requirement of $1B in sales. In the meantime not being in the RM portfolio doesn't mean it isn't a great investment.

Regards,
Todd
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