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Investing Wisely

Tuesday, January 20, 2009
By Dan

Today, shares of Citibank closed at $2.80.  A year ago, the stock was trading at about $26.  Two years ago, it was trading at over $50, and had been for the previous two or three years.  Here’s what this means in simple, everyday terms:

  • Assume that, last year at this time, you had $5000 burning a hole in your pocket.
  • Assume that you bought 100 shares of Citibank stock (about $2500).
  • And you also bought a year’s supply for four people of Diet Coke (500 12 packs) (also about $2500).
  • Further assume that you and your friends drank all that Diet Coke.
  • Today, when you went to redeem all those empty cans, you would have more money in empty cans ($300) than you would in Citi stock ($280).

The same would be true for bank of America, but only if you lived in Maine MIchigan ($.10).

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This entry was posted on Tuesday, January 20th, 2009 at 6:18 pm and is filed under Business. You can follow any responses to this entry through the RSS 2.0 feed.

3 Responses to “Investing Wisely”

  1. Michael
    January 21, 2009 at 7:22 pm

    Maine does not have a 10 cent return that is Michigan. Maine is also 5 cents. Otherwise good article.

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