IBM Hits New All-Time High

Shares of IBM ($IBM) broke out to a high of $186.37 today which is a new all-time high. In the summer of 1993, the stock reached a split-adjusted low of $10.25. That’s a growth of 18-fold in 18 years. Annualized, that’s close to 18%.

Below is a 50-year look at the stock. I Don’t think IBM gets the props it deserves.

IBM was the glamor stock of the go-go 1960s. Due to its rapid growth and relatively few splits, the nominal share price was often over $500.

IBM was removed from the Dow in 1939 and put back in 1979. In those 40 years, the stock gained an astounding 22,000%. If IBM had been in the index, the Dow would have broken 1,000 in 1961 instead of 1972. By my rough estimate, the index would be over 4,000 points higher today.

IBM reached an out-performance peak in January 1970. For the next 16 years, IBM was mostly a market performer, perhaps slightly below average. Then the bottom fell out and IBM was a sell until September 1993. Since then, the stock has been a top performer.

Posted by on October 10th, 2011 at 3:32 pm


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