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Finally! Holding onto my WBD spinoff is paying off.

DrVenture
in Other Investing
Holding this stock since a spinoff from some ATT that I have owned, as compensation, since the late 1970s. M* has a FMV of $20 on it, and the position was not exactly huge, so I held on, despite the irritation of watching it flounder. With a 1-yr return of 142%, I feel so much better.

the ATT stock came from employment with Illinois Bell Telephone after high school, working for money to fund college. It become Ameritech, and then SBC, then ATT again. It spun off NCR, Agere, Lucent, Avaya and the other RBOCs. I never sold the original issuance. Approximately $600 of stock at issuance, is now worth $45,000 in T, plus the WBD and other spinoffs, that I previously sold. Including the WBD, it is now valued at over $50K.

What a ride!

Comments

  • WABACWABAC
    Fun story. Thanks for telling it.
  • DrVenture
    edited September 12
    Thanks. If I ever sell, figuring out tax basis is going to be a complete WAG, with all the spinoffs and dividend reinvestment.

    Mr Peabody was my favorite cartoon in childhood! Along with Clutch Cargo and Johnny Quest.
  • WABACWABAC
    I'm not as smart as Mr. Peabody. I think I might be doing better than Sherman.
  • DrVenture
    You and me both!
  • a2z

    DrVenture,
    WBD seems a great candidate to stepup to heirs or charity. no math needed.

    given your cartoon fandom, i assume you know the 'Dr.Venture' is a cast member of the greatest series in the past 3 decades (yes, including the simpsons)

    hilarious "tributes" to Quest and too many others to count.
    image
  • DrVenture
    edited September 14
    No one ever makes that connection! Kudos, you assumed correctly. I even had one fellow say, "I bet you are not even a doctor" during an online disagreement. LOL I didn't clue him in. It was too funny. I literally chose the name when I was on Morningstar forums, as I figured no one would get the reference. So, a sort of inside joke.

    My son introduced me to Venture Bros. when he was around 10. We would watch it together. He knew of my appreciation for Johnny Quest, et al. And they have a character based on Hunter S Thompson, who he also knew that I had read.

    @a2z (And everybody) Have a great football day!
  • DrVenture
    Oh, and great point about the step up on inheritance. I have a few like that. When I first began investing outside a 401K, around 1987, I bought some DRP stocks. A few I previously jettisoned, but WMT, HD, ALL, are all about 35 years of pure dividend reinvestment and LTCG.
  • dstone42
    For several reasons, I sold my T before the split took effect. I was worried about ATT huge debt load when they are in a tough battle with Verizon and T-Mobile for cell phone customers. I had no idea how the streaming wars would play out -- but the WBD seems to be doing better than originally. Also, I didn't want to mess with figuring out my basis after reinvesting the T dividends for many years and then stirring in the split.

    It looks like you made the right call though.

    I agree with a2z -- your positions are a natural for willing them to your kids. I think a lot of my stocks and funds will be inherited by my daughters. My wife died six months ago and I don't seem to be spending much money on anything other than necessities (her individual account went directly to our daughters already and Fidelity carried the step up in basis very smoothly).

    David
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