Maybe true...who knows?

On July 26, 2000, two friends, Jim and John, each got a $1000 bonus at work.
They both work for Nortel Networks, where in the summer of 2000, there was
LOTS of money around for bonuses.

Jim, being an intelligent, financially conscientious person, put the whole
$1000 into Nortel Networks stock. With his $1000, and a transaction cost of
$35, he was able to purchase 7 shares at $123 each. Having watched Nortel
stock climb and climb, he felt very good about this investment, happy that
he was preparing for the future.

John, being a more care-free sort, did something slightly different with his
$1000. John borrowed a friend's truck, and proceeded to the Beer Store,
where he purchased 33
cases of beer. John also felt very good about his investment: 33 cases x 24
= is 792 bottles of beer! John, also being an intelligent guy, although
perhaps not as forward-thinking as Jim, calculated that he could drink about
15 bottles per week, and he wouldn't have to buy beer for a whole year.

Jim, of course, was appalled by John's purchase, and berated him constantly
about it. As months went by, Jim excitedly watched the stock prices, and saw
it start to dwindle.

"It'll go back up", he'd say to Jim. Jim, who had been reaping the benefits
of his investment on a daily basis, would reply, "Ya, it will. Hang in there
buddy ."

Months went by, and the value of the stock continued to fall, and there was
the beginning of a noticeable dent in the beer pile. Midwinter came, Jim's
stock had fallen to about half of it's original value, and John's beer was
about half gone. Jim, being sure that the stock had hit rock-bottom, still
was berating John for his frivolous purchase, telling him "Your beer will be
gone in six months! Who knows what my stock will be worth!!".

Well, summer has come, and hard times at Nortel continue. Bad news: Both
John and Jim have been affected by the layoffs. Last week, in order to raise
some cash to help through the rough times, Jim sold his 7 shares, at that
day's value of $12, and got $84, then after paying the $35 transaction fee,
he only had $49.

Jim stopped by John's house later that day (everyone needs their friends
during rough times), and as luck would have it, there were two bottles of
John's beer left. John, being a good, compassionate friend, offered to share
his last two bottles of beer with his friend. Jim appreciated the gesture,
and enjoyed the cold beer on the hot summer's day, but he felt a bit guilty.
"At least I got fifty bucks back out of it - you have nothing now.", he
said.

"That's ok.", replied John. "Perhaps you can help me, I need to return all
these empties.", he added, as his other friend with the truck drove up. So
they loaded up the truck, and proceeded off to the beer store. Upon arrival
at the beer store, they unloaded the empties, feeling a little grim. John
went to the counter, and collected his refund for the bottles. "33 cases x
24 bottles, at 10 cents per bottle, that comes to $79.20," the friendly Beer
Store clerk said to John as he handed him the money. Jim was speechless.

Poor guy. Can you imagine how you would feel if you just discovered that
over the course of the last year, your $1000 stock investment left you with
$50, and taking the same $1000, buying beer and drinking it, would leave you
with $80.

I'll leave it to the reader to come up with their own moral to the story.
As they say up North, beer will get you through times of no money
better than money will get you through times of no beer

 

Time to go buy some beer!

 

That is priceless

 

What a cool story - I like beer even more now. Hmmm, guess I need to go to HEB & buy a 12 pack!

 

I must be a millionaire

 

Does the same theory apply to fine wine and port? There you have the best of both worlds. Buy futures in advance then when you get them you can drink, hold or sell. I personally suggest the drink option:

 

LOL interesting story!

Personally I dont think beer was the best choice of alcoholic beverage, he could have gotten like 50 liters of Bacardi 151 for that money .

>>I'll leave it to the reader to come up with their own moral to the story.
As they say up North, beer will get you through times of no money
better than money will get you through times of no beer

We have a quote like that here too except it goes "buds will get you through times of no money better than money will get you through times of no buds". Ive never heard it used refering to beer though.

 

Yup, as I sit here drinkin' my beer I can't imagine it being a bad investment. I don't know if it holds up with that 10% rule or whatever Richard's smoking but it seems like a good investment to me

 

Excellent post. And it's sad but true. I miss the good old days when we were all going to be millionaires. Until then, I think I will have a cold one and not worry about it!

 

LIPS2000-

Thanks for fleshing that out for me!