Most people love their Apple products. What would your bank account look like if rather than purchasing the new Apple product, you would have bought their stock instead–dollar for dollar? Well, in an article written by Yaron Yitschak found in the Plugged newsletter, this is what you would have realized:
The first iPad arrived April 3, 2010 and cost $499.00, but if you would have purchased the same amount of stock at that time you would have $3,000.00, a 500 percent profit.
The first iPhone came out June 29, 2007, cost $499.00 and your profit today would be $5,700.00.
The MacBook arrived in 2006. If instead you bought $1,099.00 in stock you would have accumulated $22,500.00. A 2,000 percent increase.
The first Mac Mini came out in 2005 and cost $499.00. Your stock worth today would be $19, 700.
The iPod debuted October 2001, cost $399.00 and with a 14,500 percent increase your profit today would be $58,000. But wait…
One more. The first Macintosh computer was released on January 24, 1984 and the base model cost $2,495.00. If you would have rather opted to purchase Apple stock verses the computer you would have gained 38, 500 percent on your money and be sitting on $960,000.
Wow, that sure made me think. Unfortunately, I never had that kind of insight. While raising a family in the 80’s, there was no possible way I would have shelled out $2,495.00 for any stock to have possibly lost it all. But, I have been told repeatedly that if you like a certain product or company and think others will as well (think Amazon), then purchase a small amount of stock as an investment, e.g., 100 or 500 dollars.
There is a Proverb that says, “Dishonest money dwindles away, but he who gathers money little by little makes it grow.” When we expect an instant return on our money without any labor invested, we are gambling. Some say that investing in the stock market is like gambling, but publicly traded companies are owned by their investors, you and me. Your retirement account (IRA, 401K) more than likely has a percentage of your funds invested in stock.
What to do with the gain realized? There is another Proverb for that question, “A generous man will prosper; he who refreshes others will himself be refreshed.”