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My Grandfather was an engineer with Exxon-Mobil in the 1950s and 1960s.
His son, my uncle David, fought in Vietnam and while he was there in 1968 my grandfather gifted him with Exxon-Mobil stock. My grandfather died while my uncle was still overseas and my uncle never really recovered emotionally from this loss and the horrors of the war. He became something of a hermit and a hoarder until his recent death.

My other uncle who is now handling David's estate found that these shares given in 1968 were never sold. I do not know how many shares at this point, but he had them 55+ years. In 1968, Exxon (then known as Mobil) was a well-established, solid business with years of history, and one of the largest corporations in the world at that time - not a speculative investment like an Apple or Microsoft in its early years

In 1968, Mobil shares were being sold at around $0.20/share (if my info is correct). In addition, the stock has split 5 times since then, so every share from 1968 has become 32 shares today. Exxon stock is now at $118/share. The average dividend over the last 55 years has been $1.42 per share, but in reality it increased every year since 1981 from $0.69 to today’s $3.80. Imagine if those dividends were re-invested into shares! I seriously doubt that my uncle re-invested dividends over the years, but just imagine. The thought experiment I gave my children was to pretend that at age 20 they had bought $500 worth of shares in their Roth IRA and that it was the only time they ever invested. I asked them to give me an approximation of how much they would have from that single investment if they retired at age 75.

Smufty - if any of the above numbers are wrong, let me know. I find it fascinating.

In 1968, Mobil shares were being sold at around $0.20/share (if my info is correct). In addition, the stock has split 5 times since then...

I admit I haven't checked this.
But a price of $0.20 per share would have been deeply strange. In the olden days a whole of (meaningless) meaning was associated with the nominal stock price.

As a guess, it seems possible that the price you are seeing from whatever source you're using is already split adjusted? Not necessarily correctly, but adjusted in some way.

Often the web site of the issuer (Exxon) has a page in their investors section for the correct adjustments through time.

Jim

a [1968] price of $0.20 per share would have been deeply strange. In the olden days a whole of (meaningless) meaning was associated with the nominal stock price.

As a guess, it seems possible that the price you are seeing from whatever source you're using is already split adjusted?


Exxon has a look-up feature for historical prices going back to March 7, 1980, and the price was $3.60 (split adjusted), so Jim's hypothesis seems plausible.

Adjusting for dividends paid is the other major issue here. On this site: https://www.macrotrends.net/stocks/charts/XOM/exxo... you can find the historical price of Exxon stock going back a bit farther, to 1970, and the price adjusted for splits AND dividends was 50c; it wa about $1.20 in March, 1980, so Exxon's prices are probably NOT adjusted for dividends, whereas the macrotrends prices are.

So your 20c per share price sounds plausible if it is adjusted for both splits and dividends. Since there have been 4 2:1 splits since 1980 (and 5 since 1968), that would mean that the $3.60 price in 1980 was really $57.60 at the time ($3.60*2^4). The price in 1968 is impossible to calculate, but it would have been much higher than $0.20*2^5=$6.40, given that that $0.20 price is adjusted down for dividends paid out over time, which have been substantial.

dtb

But a price of $0.20 per share would have been deeply strange

I thought it was too good to be true, but I keep finding charts like this one:

https://www.macrotrends.net/stocks/charts/XOM/exxo...


Smufty

Sorry DTB, I noticed I had found the same chart you posted.
I did not realize it was adjusted for both splits and dividends.

Still, a pretty nice LTBH

Smufty

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