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  • Writer's pictureIshfaaq Peerally

Diamonds or Stocks: Analysis of Tiffany & Co. (NYSE:TIF)

If you were in 1987 and you had 6000 USD to buy a gift for your special someone. You had three choices

1. Buy a 1 carat diamond for 6000 USD at Tiffany's

2. Buy some shares of an S&P500 index fund for her/him for 6000 USD

3. Buy some shares of Tiffany & Co. for 6000 USD

Which one would make the best gift ?

In 2018, the 1 carat diamond is worth about 20 000 USD, the index fund is worth about 55 000 USD while the shares of Tiffany's are worth 450 000 USD(without the dividends). I have been investing in the company since September 2016 and today, Tiffany's is the number one stock in my portfolio. The more the stock price of the company fell, the more I was buying because the company had good fundamentals. Under the new management, Tiffany's is set to continue outperforming the market.

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