Tuesday, January 04, 2022
Gigantic course plus
That’s how rich you could get with Apple stock
From Jan Gänger
Apple is worth a whopping three trillion dollars on the stock market. An IPO investment would have been a way to become a multimillionaire with ease. But it would have been worthwhile to buy stocks instead of iPhones.
Is this a speculative bubble or is it completely normal? The stock market doesn’t seem to care, Apple is heavy on the stock market with a whopping three trillion dollars. Anyone who got on at a particularly good time should have a good arbor.
The IPO was such a point in time. A good 40 years ago – in mid-December 1980 – the market value (that is the number of shares multiplied by the current price) was around 1.8 billion dollars. A share went for $ 22. Anyone who bought shares for a few thousand dollars back then and kept them would have long been a millionaire.
To put it into perspective: 100 Apple shares cost $ 2,200 to go public. Over the years there have been five stock splits to make the paper look cheaper. In such a step, the number of shares is increased and the price decreases accordingly. For example, if the number of shares is doubled, the price is halved.
A worthwhile investment
Because of the stock split, one Apple share has meanwhile become 124 shares. Calculated backwards, the share cost around 17 cents when it went public. The price is currently at $ 182 – that’s an increase of a whopping 107,000 percent. That means: The investment of $ 2,200 would have turned into a fortune of around $ 2.35 million today.
But an investment would not only have been worthwhile when it went public. It would also have been pretty smart, financially at least, to buy stocks better than an iPhone. The first iPhone, for example, was available in Germany in November 2007 for 399 euros. Anyone who would have put this amount into Apple shares at that time should look forward to around 14,700 euros in their depot today.