Friday, April 30, 2010

What If I Had Bought Apple Stock Instead?

On November 10, 1997, Apple released the Apple PowerBook G3 250 computer for $5,700, when Apple stock was trading at $4.67 per share. Apple is now trading at $262.93, or about 56 times the share price in 1997 (see chart above).

What if instead of buying the Apple computer in 1997 for $5,700, you had purchased 1,221 shares of Apple stock with your money? Today, those shares would be worth about $321,000 (APPL is trading at $262.93 right now).

See more of these comparisons for different Apple computers in different years here.

HT: Matt B., the Plaid Pundit

12 Comments:

At 4/30/2010 2:09 PM, Blogger Eric said...

Every enterprise's success and failure is due to people inside. Products are just the results of people running the business.

 
At 4/30/2010 2:25 PM, Blogger Matt said...

The cartoon in my head is all the commies that run around protesting in the streets "death to capitalism" ...while many, if not most, are carrying an apple device in their hemp purses/man-purses.
Irony is so fun ;)

 
At 4/30/2010 2:29 PM, Anonymous Anonymous said...

Sounds like a "risky stock market scheme".

 
At 4/30/2010 2:31 PM, Anonymous Anonymous said...

What if you had invested the money you paid for that GM car in 1997, in GM stock instead? Just asking.

 
At 4/30/2010 3:32 PM, Blogger Abhishek Baheti said...

If we all bought shares and not buy their products, we would be loosers as company would have no sales and their stocks would not rise. So all of us have contributed to the share price. A good company is one for which you are and many are customers and shareholders too. my two cents. Abhishek

 
At 4/30/2010 3:37 PM, Anonymous gettingrational said...

What is $150,000,000 X 56?

That is what Microsft's investment in APPL in 1997 would be worth today!

Warren Buffet should remind Bill Gates, at this weekend's Woodstock for Capitalists, to be a long term investor. Omaha, Nebraska is the site of Berkshire Hathatways's annual meeting.

 
At 4/30/2010 4:27 PM, Anonymous Anonymous said...

But what if you used that computer in 1997 to do a business or an enterprise, or start a career? maybe you could have more than that in those 13 years....

 
At 4/30/2010 9:52 PM, Anonymous Anonymous said...

I'll trade you my '97 mac for 1221 shares of Apple!

 
At 5/01/2010 6:59 AM, Blogger Paul said...

Matt,

"The cartoon in my head is all the commies that run around protesting in the streets "death to capitalism" ...while many, if not most, are carrying an apple device in their hemp purses/man-purses.
Irony is so fun ;)"

Moore as exhibit A.Michael

 
At 5/01/2010 11:04 AM, Blogger Marko said...

Even a big pile of money makes a lousy computer, but I get your point.

I am trying to think how many computers I have owned since 1997. Lots. None of them apple's, however. You could by three non 'stylish' computers in 1997 for that price. So, I would say buy one normal real computer, and with the money you save on an apple invest in aapl. That is what I am doing now :)

 
At 5/03/2010 2:37 AM, Blogger roy edroso said...

"carrying an apple device in their hemp purses/man-purses..." Ha ha. Conversely: Cartoon of many right-wing douchebags salivating over what they would have earned if they hadn't dismissed Jobs as an irrelevant hippie.

Oh, but I forget -- on the internet you're rich and powerful.

 
At 5/03/2010 11:28 AM, Anonymous Sumbol said...

Yeah, "what if..."

What if a computer is a consumption good which, unless it fails to meet your expectations, provides immediate utility for your dollars.

What if you purchased Apple stock and it FAILED, as it very well could have done. It's always easy to play Monday morning quarterback with stocks. Individual stock purchases have large risks, goods purchases have fewer risks. Just a little survivorship bias here.

You should get a job writing Snapple Facts for interesting but entirely useless observations.

 

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