We doubled down and bought the same number of shares again.
Yes, the chip maker is going through a soft patch, lowered its guidance, all that. Tablets are the stage of the rage, and INTC is conspicuous by its absence in that quarter.
No company is bulletproof. But step back and look at the view from space. INTC reportedly has 80 percent of the market for PC and server chips versus 20 percent for AMD. (Whatever happened to Taiwan Semiconductor? Must have dried up and blown away.)
Ghost Money is generally leery of tech companies. We're not smart enough to understand what many of them do, and the Latest Thing can quickly spill its te and become the Last Thing. We make an exception for a few big, big tech companies that are seasoned by survival through many of the inevitable market cycles, that spend on research and development like the day of judgment draws nigh, that have huge economies of scale, clean-sheet financials, and management that seems to look farther out than the next quarter.
Oh, and that pay you to hang around till the next time they blow the doors out with a profit boom. At the price for our second tranche of INTC, the annual dividend was 3.78 percent. You look at the dividend history and see a long record of steady or increasing dividends.
Being able to buy an INTC on sale is one of the advantages of having a Chinese wall between an ultra-conservative retirement account, however modest, and a trading account. Knowing the retirement account is safe (except from inflation) steadies the nerves.
Keywords: [INTC] [chip makers] [AMD]
Ghost Money's author does not claim to know what he's talking about. He is not an investment advisor. This site is for entertainment, if it can even manage that.
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