Apple since 2003

Microsoft: Up 25,000% since IPO in 1986

Microsoft loses 11% on 4/28/06

Bill Gates loses over 3 Billion dollars… in one day 4/28/06

NOW HE IS ONLY WORTH 55 BILLION DOLLARS.

Bill Gates is arrested for reckless driving

Bill Gates $113 Million House
http://www.usnews.com/usnews/tech/billgate/room12a.htm

Most expensive residential house ever built. The $1.4 million guest wing has two bedrooms, 2 bathrooms, & its own dinning room.

Pool: $6 million, 60-foot long, complete with a waterfall and its own underwater stereo system. 12 bathrooms. 3 kitchens. kitchens Library has 10,000 rare books including da Vinci’s 72 page $31 million scientific notebook.

Bill’s garage has 3 Porshes, 1 Mercedes, 1 Jaguar, 1 Ford Mustang, and a Ferrari. His other $1.2 million garage will hold 30 cars. Bill can jump off excess energy in his trampoline room with 20-foot high ceilings.

Michael Dell’s House

Most expensive house in Texas. 33,000 square feet, with 8 bedrooms, 8 baths, and 13 ½ baths. The yearly property tax bill for this house is $250,000.

Bill Gates’ Opportunity Cost of stopping and picking up money on the street

Consider that he made this money in the 25 years or so since Microsoft was founded in 1975. If you presume that he has worked 14 hours a day on every business day of the year since then, that means he's been making money at a staggering million dollars per hour, around $300 per second. Which means that if, on his way into the office, should he see or drop a $1000 bill on the ground, it's just not worth his time to bend over and pick it up. He would make more just heading off to work.

Bill Gates’s Restroom

Billl Gates hit with a custard pie

Lucent Technologies: Ouch!

GENERAL MOTORS: OUCH!

Which car is more expensive?
$8,000 $5,000

Which stock is more expensive? • Whirlpool at $67 a share… or…

Or Maytag at $27

To find out which is more expensive…
• You need to understand the P / E ratio, or the PRICE TO EARNINGS RATIO. • This is what matters, not the stock price

PE RATIO FORMULA
Stock Price ---------------= Price to Earnings Ratio Earnings per Share 27 --------- = 12 P/E Ratio 2.18

The price you are paying for Maytag is 12 times earnings!

Another way to look at the PE formula
M (Multiple) X E (Earnings) = P (Price) MXE=P

WHIRLPOOL’S PE RATIO
-------------- = 11

$67 6

PE RATIO

WHIRLPOOL  PE = 11 MAYTAG  PE = 12

WHIRLPOOL (AT $67 A SHARE, IS ACTUALLY THE CHEAPER STOCK: It trades at 11 TIMES EARNINGS) Maytag at $27 is the more expensive stock which trades at 12 times earnings and is more expensive…. But…..

Maytag is growing its earnings at 9% a year and Whirlpool is growing at 5% Most investors would argue since Maytag is growing twice as fast, it’s PE Ratio should be twice as high Whirlpool’s. So Which stock is really Cheaper?

MAYTAG, even with its higher P/E Ratio, because it is growing twice as fast!!

• Maytag is more likely to produce a Win. Maybe the “line”, or PE Ratio is wrong • Always compare the P/E of a Company to its competitors, or cohort, and the average of the S & P 500.