Friday, February 4, 2022

Stocks and investing

My mom's investment guy sent out an email with news that Google had announced it will be splitting it's shares 20:1! and that overnight the stocks were up 7%. Other than our quarterly updates, when guy wants to sell and/or buy stocks, I really haven't paid attention to what all her portfolio consists of. But, apparently it consists of 22 shares of GOOG, which are currently almost $3000 a share. Good grief, no wonder they are splitting. The email also said that Googles net income for 2021 was $76 BILLION, a 41% increase compared to 2020.

I really don't know much about stock splits or what that actually means. So far everything I read about it is it's like no big deal, doesn't change your total value of stock in the company. Lowering the stock price is helpful to attract more investors, as most can't afford $3000 a share. She's currently got about $65,000 in Google and after the split it will still be $65,000, so I was trying to figure out why the big excitement over this news. Enough excitement that her investment office sent out an email specifically about this news, which in the 2 + years I've been on the email for her accounts, we have never received an email like this before. The only thing I can think is that after they do the split (in July) a share will now be like $150 and if it eventually keeps going up, like it ended up at $2960, some day - well 440 shares is going to fare a lot better than at 11 shares, LOL. Looking at historical stock price data, Googles share price has increased from $300 to $3000 in the past 10 years. If we see an increase % like that over the next 10 years, my mom's 440 shares will be worth $660,000? But, I'm confused, because the historical report I am looking at of their share price month by month going back, shows a stock split back in 2014 and 2015 (though smaller) but the price per share didn't seem to go down right after the split. Maybe because they were such smaller splits, I'm not sure. This is what all confuses me about stocks and I don't spend much time trying to figure it all out. Too confusing.

All's I know is she's going to end up with 440 shares of Google and I'm sure in the long term that is a good thing, LOL.

When I was in college, getting my business/accounting degree I had to take a few finance classes, so learned a little about how the stock market works. For awhile I had considered double majoring in Finance, but when I saw the additional math classes (always a struggle for me) needed, I decided nope. I made it through the advanced algebra classes I had to take, but Calculus just about did me in. I wasn't taking any more math past that and one of the finance classes had a lot of complicated math to deal with, so I just majored in accounting. Maybe if I had taken a different route in life (ie didn't get married so damn young!) I could have been in college younger and full time and been able to take the time to deal with classes like that. But I was married and working full time, while taking 2 classes every quarter. I just didn't have it in me.

4 comments:

  1. Yes but can you imagine the maybe if you hadn’t had gone to school even when you did, since for over twelve years you’ve been the only one with a income. Wow that is eye opening on the other side. Thank god you did go to school given your position. I lost my husband at 41 to cancer. I’ve been so thankful that I’m a RN, that I had gone to college and could support my family. And have an amazing pension now. I wish I had been better saving money. But my profession and my job was my blessing.

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    1. For sure, getting a degree was at least one smart thing I did in life. It's served me well.

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