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FDAiscooked | 1 year ago

Intel has been atrociously managed.

If you invested $1 in Intel in 1998, your investment would still be worth $1. Less than that if you adjust for inflation.

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NAHWheatCracker|1 year ago

You would have been paid $17.7074 in dividends, according to https://seekingalpha.com/symbol/INTC/dividends/history.

If you bought one shared near the end of 1998, you would have paid around $30. That share would be worth around $22 now. So, you would have gained around $9 not accounting for reinvestment of dividends.

Not a good return on investment, in comparison, but you picked 1998 in the middle of the dot com boom. If you picked the end of 1995, you'd have paid $7 and have around $40 today, which isn't too much worse of a return than the S&P 500.

This isn't to say Intel hasn't been poorly managed, by the way.

papercrane|1 year ago

You can't just look at the stock price. INTC has split and had dividends since 1998.

If you bought $10,000 of INTC in Sept 19th, 1998 and held it to today the stock would be worth $17,000 and you would've collected almost $12,000 in dividends.

modeless|1 year ago

Is there any site that shows historical stock graphs with an option to include dividend reinvestment and adjust for inflation? Practically every online conversation about stock returns makes these mistakes.

happyopossum|1 year ago

That's just over a 4% annualized return, if we back out inflation it's about 1.5%.

That's still crap. The only way you'd be in decent shape is if you took the dividends and invested those in any of INTC's competitors.

defen|1 year ago

Just imagine if you'd invested that money in Domino's Pizza instead (the hungry investor strategy). You'd have like $350,000.

wslh|1 year ago

Yes, think if you have invested in Bitcoin when it was announced on Slashdot. The problem with cherry picking dates is that we don't have a time machine yet.

fidotron|1 year ago

I am unpersuaded Intel could have done anything once they failed to get any sort of traction in phones or tablets.

AMD starting to execute properly only made their headaches that much worse, but they had been far too fat for too long.

Wytwwww|1 year ago

> failed to get any sort of traction in phones or tablets

And had they stuck with XScale it I don't think it would be surprising if they ended up in Qualcomm's current position (default high-end ARM CPU maker). Yet they consciously decided to throw it all away..

dgacmu|1 year ago

With the stock split and dividends reinvested, the $1 would now be worth $1.64, _not_ inflation adjusted. You'd still be in bad shape if you inflation adjust - the $1 with inflation would be $1.93. So you've still lost money overall, alas.

If you didn't reinvest the dividends you'd be ahead, though. Which is kind of ironic - but you'd have taken out a fair bit of money from 2016-2022 when the price was high.

viral007|1 year ago

I can attest to it, the value hasn't grown much in my inactive portfolio. This portfolio was set up as set it and forget it in 1999. I will need to run a realized gain/loss statement.

h2odragon|1 year ago

Intel peaked with the PPro