11.19.2010

IBM: A stock I would buy


IBM

Why I would buy it:
  • A strong technology company ... not just hardware but services!
  • A little (really little) sentimentalism because K and I used to work there. But sentimentalism is the wrong motive for investing. A close relative makes this mistake with A.T.&T. (too heavy in the stock!)
  • The dividends are 1.8%
  • But the real strength is the earnings of $ 11. per share. (11 / 145 = 7.5%)


The downside is the high entry price. If one buys a round lot of 100 shares, the investment has an entry cost of $ 14,500

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