Part 16 - Ten-thousand fold profit in six years- the legend of Taiwan stock market

What caused me to purchase MSFT (Microsoft stock)? Because I was so frustrated about my “old" computer, and MSFT was the only few US stocks I known. However, I gasped with surprise after the agent’s reply. The price of MSFT boomed tens and hundreds fold after it had been listed on the Stock Exchange. I think I was a genius who dared to buy this burgeoning stock which had been raised numerous fold. Fortunately, my supervisor had great discerning and allowed me to do this transaction. (Past experiences has proved my advices was right although it was always out of his expectation.)

However, things was not going well as expected. Everyone was fear and away from the electronic stocks – high risk and unlikely high profit. Although my supervisor did not understand stock market well, the “dukes" of my group who considered themselves as the US stock experts. So, I had the verbal battle to fight before achieved this transaction. I found many excuses to face these “dukes" – Remembered?! They were oversea Financial PhD. Many of them had lived in America for many years, and some of them were teachers whom taught American students how to invest US stock.

Therefore, the reason I gave them was simply from the analysis which they could not understand. I was exactly right! Also I found a fact: A good teacher may be not a good investor.After all, MSFT’s price had boomed hundreds fold before I left this organization.

Note here, the stock splits of MSFT from 1986 to 2000: Sep 21, 1987[2:1], Apr 16, 1990 [2:1], Jun 27,1991 [3:2], Jun15, 1992 [3:2], May 23, 1994[2:1], Dec 9, 1996 [2:1], Feb 23,1998 [2:1], Mar 29, 1999 [2:1], Feb 18, 2003 [2:1]

The price had jumped absolutely 60 X 288=17,280 fold

Only in 1991 to 2000, the stock had splited 36 fold. There were about 450 fold increasing during the progress of this investment. (see the illustration below)

I have been inspired by investing MSFT: only if one pay attention to the surrounding environment, will he be able to discover the global trend is taking place. Behind these trend is the enormous investment opportunity. Besides MSFT, I did not purchase any other electronic stocks at that time. For I had no idea about “globalization trend" ,which I am talking about now, nor any concept about that. I only felt “earning money is easy" after profited hundred times from it. Anyhow, I stepped forward to “profit ten-thousand fold in six years" by purchased MSFT.

To be continued…