Microsoft: How Much Profit would You have Now IF You invested USD 500 AFTER the Dot-Com Bubble in 2003 $Microsoft(MSFT)$
A lot of us 🐯🐯🐯 are wanting to buy the dip now, but at the same time we’re concerned that the history of the tech-market + US stock market + other stock markets crashing will repeat itself given that the recession risks are very real 😰 After all, MSFT did crash from around USD 119.94 in 1999 to USD 40.25 in 2000 during the dot-com bubble. It took MSFT more than 14 years to recover what it lost during the dot-com bubble 🙈🙉🙊
There’re 2 approaches of investing during a 🐻 market:
(1) Higher-Risk: Buy the dip at the price that one thinks the companies is worth & keep dollar-cost-averaging as it goes down.
🛑Con: You’ll have to live with all the heartaches as the stock bottoms 😅
(2) Lower-Risk: Buy when the stock &/or market has given some recovery signal.
🛑Con: You won’t have the satisfaction of getting the stock at one of its lowest price.
Let’s study the rewards 💵💵💵 related to taking a lower-risk approach 😉 After the dot-com bubble crash, the Nasdaq reached its all time low on 4 October 2002. The Nasdaq officially recovered to its all time high on 23 April 2015, which was the peak on 10 March 2000 before the dot-com bubble. Below, we evaluate 2 lower-risks scenarios: 1 year after the all time Nasdaq-low VS when the Nasdaq totally recovered after the crash.
💭QN: How much profit would you have made if you invested USD 500 on 4/10/03 1 year AFTER the all time Nasdaq-low?
📝ANS: After 19 years, your 500 is now 7042.69. Annual Rate of Return =15.09% 🤩🤩🤩 (see photo)
💭QN: How much profit would you have made if you invested USD 500 on 23/4/15 when the Nasdaq recovered?
📝ANS: After 7 years, your 500 is now 3520.73. Annual Rate of Return = 30.75% 🤩🤩🤩 (see photo)
Fellow 🐯🐯🐯, which of the lower-risk scenarios would you choose? Or would you still rather choose a higher-risk approach? Share your thoughts in the comments section & please remember to like my post, many thanks 🤗
Related posts on my homepage🕵🏻👩🏻💻:
⭐️ Invest Wisely in this 🐻 Tech-Market by Understanding the Biggest Tech-Crash: The Dot-Com Bubble💻🫧
⭐️ 💻 Microsoft: Does MSFT Have More Room to Grow? Is this a Buying Opportunity?
As usual-🤔💭 Consider POV & Actions of investors + 👩🏻💻👨🏻💻 Research + 🗑FOMO & Greed = Investing Wisely 🤓🤗 + Accumulating Wealth 💵💰
Source websites: Yahoo & finmasters.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- CynthiaVogt·2022-07-26If there is a 'IF'... Microsoft will still make progress though1Report
- DouglasMalan·2022-07-26Great theory. Eyes on the bubble & promising industry!!1Report
- ___ _·2022-07-27Awesome post 👍 Thanks for sharing 🤗1Report
- DanZillaXD·2022-07-26Oh wells1Report
- VestTig·2022-07-26its too late. can recommend new bubble stock?1Report
- hellodarz888·2022-07-26hindsight always1Report
- LMSunshine·2022-07-27@BenjiFuji Are you considering MSFT?LikeReport
- BellaFaraday·2022-07-27Holding now is the wiser choice for now.LikeReport
- CharWF·2022-07-27okLikeReport
- SR050321·2022-07-26Fantastic 👍😊1Report
- james_l·2022-07-26ok1Report
- Ben911·2022-07-26Ok1Report
- Kengs·2022-07-26Ok1Report
- kiraro·2022-07-26Good1Report
- Tyanak·2022-07-26👍🏻1Report
- Tiger cub cu·2022-07-26Ok ok1Report
- Alancheah·2022-07-26Ok1Report
- Investigater·2022-07-26Nice1Report
- Roarrrrrr·2022-07-26VLikeReport
- RChia·2022-07-26like1Report