Blogs & Comment

Nortel Then and Now

The back page of the current issue of Canadian Business compares what 100 shares of Nortel could buy at its peak in July 2000 to what these shares could purchase in late January 2009. Since the price fell from $1,231 to $0.13 per share during that 8.5 year period, the purchasing power comparisons are a strong reality check.
Based on a total value of $123,100 then compared with $13 now, here’s some more comparisons.
At the peak price, 100 shares of Nortel would pay four year’s of tuition and fees in the arts program at the University of Toronto for six students. By January 2009, the same shares might buy a two or three used text books at a Goodwill store.
How about a one week all inclusive vacation in Cancun for you and 33 friends or would you rather be able to buy a travel magazine and a cup or two of coffee and read about what trips you want to take.
Lastly, $123,100 invested at 5% would give you $2,000 a month in income for about six years. At $13, you could have the same level of income for less than five hours.