Let say in the summer of 2000 that you had $1000 to blow. You may wonder "What should I spend this nice wad of cash on?" Any college student's first thought is "BEER!!!", but once his/her senses kick in, they think, "Well, maybe a nice stock option..." (yeah, right...).

Which one would have generated the most return? Well...

July 26, 2000:
$1000
Nortel Networks stock: $35 transaction cost + 7 shares @ $123 ea.
BEER: 33 cases x 24 = 792 bottles = approx. 15 bottles/week


*In the year between July 26, 2000 and July 26, 2001, Nortel stock plumeted due to layoffs etc.*

July 26, 2001:
Nortel: 7 shares @ $12 ea. = $84. $84 - $35 transaction fee = $49
BEER: 792 x 10 cents/bottle refund = $79.20

In this instance, college instincts work to our advantage. Never let it be said that the young don't know how to invest...

Log in or registerto write something here or to contact authors.