A personal finance blog dedicated discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance.


Monday, May 09, 2005

My InterActiveCorp Experience

When I was writing that last post about Bill Miller, it reminded me of an investment experience I had back in the mid-90s. Here's the story:

Back when I was in college, I bought 100 shares of SilverKing Communications, which was a small broadcasting company. I had read an interesting article in the Wall Street Journal about the company and decided to give it a shot. So, I bought 100 shares at $14.78 each. My wife and I had only been married a few months when I bought it. Anyway, she started wondering out loud as to when the stock was ever going to do anything. A year went by and the stock basically sat at around $14.

It started to move up from there and got into the low 20s. Then, one day I went to the local convenience store and bought the Wall Street Journal and there it was: Barry Diller to Become CEO of SilverKing Communications! The stock went up almost $15 per share that day! I held on for a while and eventually sold it at around $29 per share. BIG MISTAKE!

I should have held on to it. SilverKing merged with Home Shopping Network a couple of years later and then through some acquisitions and a name change became InterActiveCorp. My little $1,500 investment would now be worth $9,144 for an average rate of return of 22.24% over the last 9 years!

Oh well, coulda woulda shoulda, I suppose.

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