67 responses

  1. The Dividend Pig
    March 4, 2011

    That’s a pretty tough question to answer. I love apple, I think they embody more than hardware and software, but rather an experience. I’ve never used a product, no matter if it’s the ipod or the macbook, that is more fun, simple, and most importantly, intuitive.

    My main concern is what happens to apple when the sickly Steve Jobs no longer controls the reins. We all saw what happened the first time he left. Those are big shoes to fill.

    • moneycone
      March 4, 2011

      Though it will be hard to find some one as passionate about Apple as Jobs, I think he’s created a corporate culture that can run fine without him!

    • Investor Junkie
      March 4, 2011

      Apple is a different company than the first time he left in the late 80′s.

      • moneycone
        March 4, 2011

        Most definitely! The Apple as portrayed in the ’1984′ ad is nothing like the Apple of today!

  2. retirebyforty
    March 4, 2011

    Wow, mind blowing. I don’t buy Apple product because I think they are overpriced. Apple stock on the other hand, looks overpriced, but it will probably keep going up as long as they keep coming up with innovative products.

    • moneycone
      March 4, 2011

      The fact that the nearest competition is years behind in most of Apple’s products speaks volumes! Year 2009 was a very good year to buy Apple shares!

    • Sinison
      March 5, 2011

      As far as overpriced.. considering earnings and the fact the company has nearly $70/share in cash reserves.. not really seeing the overpriced.. maybe at $450… but in my mind it’s currently trading at a discount in my opinion.

      S

  3. Robert @ The College Investor
    March 4, 2011

    This is just awesome! Goes to show that you should invest in yourself before stuff that just gets obsolete in 6 months.

    • moneycone
      March 4, 2011

      I actually invested in both! I bought my first AAPL share in 2003 or 2004 I think! Been hoarding up ever since! I also bought my first Apple product around the same time!

  4. Investor Junkie
    March 4, 2011

    Great Comparison! Shows how much consumer products you should buy and invest instead.

    • moneycone
      March 4, 2011

      True! But not too many companies are there which are like Apple! Palm is one good example of a company with a lot of potential that fizzled out.

  5. Buck Inspire
    March 5, 2011

    Awesome article. Damm, you must be rolling in the dough. Terrific move back in 2003! I still remember talking with a friend back in the early 2000′s. “This company Apple is sitting on tons of cash.” I didn’t listen. I believe the stock was around $12… Don’t mind me while I go throw up! :)

    • moneycone
      March 5, 2011

      No Buck, it’s not what you think! After the crash and after losing quite a bit, I decided to stay out of the market (rookie mistake!). But then got introduced to the Mac at work. Used it and decided I should invest in this ‘quirky’ fruit company. Remember, this was before the iPhone and the Apple stores. I think this was probably the only stock at that time I owned!

      Bought this stock without looking at fundamentals, which in hindsight is not a very smart thing to do! But, it paid off and I’m not complaining!

      But then this is a technology company – you haven’t won till you actually take profits!

      • Buck Inspire
        March 5, 2011

        I like your attitude. You recognized your rookie mistakes and learned from it. I had to endure some blowhards who scooped Apple back in the day. Were they lucky or diligent? Guess shouldn’t be too bitter. :)

        Good point about actually taking profits. Had some friends who invested in some high fliers. They were making paper gains hand over fist. Recession hit and wiped it all out and then some. I think he stuck to his guns and made it all back and more. The stock market really is a roller coaster!

  6. DIY Investor
    March 5, 2011

    Those who bought early on deserve the spectacular returns. Whether it is overvalued today is difficult to tell…we don’t know what’s coming next. We do know that Apple has hit on the formula for producing “cool” products that create excitement people can’t resist.
    I remember asking a student at the end of a class what he was listening to and he showed me the iPod as other students gathered around. They all had questions – how much was it, where did he buy it etc.
    I bought Apple shares the next day but after making a nice gain, sold way, way too early.

    • moneycone
      March 5, 2011

      “sold way, way too early”

      Hey you never lose by taking a profit! :)

  7. Trudy
    March 5, 2011

    Wow…absolutely fascinating. It is easier for most consumers to consider consumption over investment though. Consumption can be investment though if such tools are used to generate revenue in a business.

    Nice post.

    • moneycone
      March 5, 2011

      Thanks Trudy!

  8. SavingMentor
    March 5, 2011

    Really enjoyed this MoneyCone, great idea you had to put this together. Sure makes me wish I paid more attention to technology stocks. I’m even in the software development field so I could probably reasonably judge IT companies to invest in.

    Oh well, you know what they say about hindsight ;)

    • moneycone
      March 6, 2011

      Glad you liked it SM! Tech stocks go to giddying heights, but then when they fall, they fall as fast!

      ‘The higher they climb, the harder they fall’! So, till you actually sell for a profit, you haven’t made anything! :)

  9. Julie @ The Family CEO
    March 6, 2011

    Amazing post! Kind of gives new meaning to paying yourself first.

    • moneycone
      March 6, 2011

      That’s a good point Julie!

  10. 101 Centavos
    March 6, 2011

    Fascinating…. “If only” are words I’ve uttered on more than a few occasions.

    Brings to mind the last scene in Forrest Gump: “Lt. Dan bought me some shares of a fruit company”..

    • moneycone
      March 7, 2011

      One of my favorite movies!

  11. The Biz of Life
    March 7, 2011

    You’d be rich. Just as if you’d bought shares in the mutual fund companies instead of their products.

    • moneycone
      March 7, 2011

      A very astute observation Biz!

  12. Aloysa
    March 7, 2011

    I actually got an Iphone and cannot be any more happier. ATT had a promotion for a 3G and I got it for 49.99. Love it. I love Apple in general. But I do buy it very seldomly and ONLY when there is a promotion going on. Interesting though about shares… Makes you really think. Great post!

    • moneycone
      March 7, 2011

      Makes you think, doesn’t it?!

  13. Jackie
    March 7, 2011

    Hah maybe I’ll institute a new policy of actually buying shares of Apple when I buy one of their products. I just wish I felt as good about them as a company as I do about their products.

    • moneycone
      March 7, 2011

      Or better still, buy Apple shares to fund your Apple addiction!

  14. everyday tips
    March 7, 2011

    What an interesting post. I thought Apple was overvalued a year ago, and I was obviously wrong.

    Regarding what apple will be worth in 5 years, I guess it depends on how innovative they can continue to be, and if the competition can come up with anything.

    • MoneyCone
      March 8, 2011

      Yep! Much depends on how successful they are with new products and how much edge they can maintain with their existing ones.

  15. Squirrelers
    March 7, 2011

    Fascinating post, Money Cone. Good stuff! This really puts into perspective just how successful that company has been.

    It also serves as a reminder of the opportunity cost of funds – whether Apple investments or otherwise. As Warren Buffet is reported to have viewed it – that dollar you spend now could be worth $10 later.

    • MoneyCone
      March 8, 2011

      Thanks Squirrelers! I’m surprised by how popular this post has become looking at the stats!

      Apple’s growth has been phenomenal! The question is, is this the beginning? ;)

  16. JohnnyB
    March 9, 2011

    *sigh* I’ll be “that guy”, who takes the time to point out that the picture of the “unibody MacBook Pro” isn’t a picture of a unibody MacBook Pro, it’s the old, pre-unibody version. The biggest giveaway is the button-release for the body, as the unibody version uses magnetic latches. The plastic seam around the rest of the lower part of the body is the other dead giveaway to it being pre-unibody.

    Good article, though!

    • moneycone
      March 9, 2011

      I knew Apple users were perfectionists! :) Good catch! I’ll update that Johnny!

  17. KenB
    March 9, 2011

    I bought 100 shares of Apple in the early 1980s when I fell in love with my Apple IIe, clearly the best investment I ever made. If I had bought a 1,000 shares instead, I would retire now instead of waiting a few years.

    • moneycone
      March 9, 2011

      Well you at least didn’t sell the 100 shares!

  18. Romeo
    March 9, 2011

    Excellent and very different. If that’s what you were going for, you definitely succeeded.

    • moneycone
      March 9, 2011

      Thanks Romeo!

  19. Dana
    March 10, 2011

    Hope the company culture can still help Apple to create popular product without Steve Jobs. If proven, I think Apple Shares is a good choice.

  20. Jessica07
    March 10, 2011

    Yikes! I think I’m going to be sick with regret. :O It’s amazing how different technology stocks look when you put it all together like this. Wow! I blame my age.

    • MoneyCone
      March 10, 2011

      Hey don’t write off Apple yet! :)

  21. Spruce Up Your Finances
    March 10, 2011

    Very interesting post. Investing in an apple stock may really be a good idea since more people are really into Apple products lately. The company has been the front runner in the tablet and smart phones market and they continue to do so because of a very good R&D department.

    I am a user of one of the Apple products, the iPhone, and I can really see how people can get hook into it.

    • MoneyCone
      March 10, 2011

      Apple’s Mac base too is growing, slowly but surely.

  22. LaTisha @FSYAonline
    March 10, 2011

    I almost didn’t want to read this, cause I knew I would be sick to my stomach. Ugh, I really wish I would have bought Apple shares. Especially when I went down the list and realized I had bought most of the items! (As I type on my Macbook…). Great post! I’ve got a friend on Facebook that is a ‘Apple Fan Boy’ that needs to see this lol.

    • moneycone
      March 10, 2011

      It’s funny because those who bought Apple product like an iPod regret not having bought stock, those who bought stock regret it having sold it too soon, those who bought stock and having held on to it, regret not having purchased more!

      I belong to the third category as well! But as I always say, till you actually sell and take profit, all these are simply incredible numbers.

  23. Afford-Anything.com
    March 10, 2011

    I bought Apple stock when it traded at $159 per share … now its around $340. Double return! Unfortunately I didn’t have much money at the time, so I could only buy 4 shares. But that’s better than nothing!

    • moneycone
      March 10, 2011

      Hey you decided to buy shares instead of an iPod! You are already a winner!

  24. First Gen American
    March 11, 2011

    This post is absolutely brilliant. Genius actually. It really shows the impact of spending vs saving and well, it’s significant even on small purchases like Ipods.

    • moneycone
      March 11, 2011

      Thanks First Gen!

  25. Lee
    March 11, 2011

    I bought a Mac in 1984 for about $2400.00 with the printer and all. I cringe to think what that would be worth. At least I made couple years salary programming on it … so I am ahead.

    • moneycone
      March 11, 2011

      I would’ve loved to have used a Mac at that time! Mac’s were so ahead of the PC in 1984, those were good times!

      • Jake P.
        March 12, 2011

        And still are!

  26. Jake P.
    March 12, 2011

    This article is pretty awesome. Interesting to see how much money could have been made whenever you look back at a chart or something such as this. But, with that being said, the reason I make money is so I can buy awesome Apple products!!

  27. Kevin Cimring
    March 14, 2011

    Ha, great article! Reminds me a lot of “The Millionaire Next Door”. Great book and similar message to the one underlying this post.

  28. TradeTechSports
    April 3, 2011

    These is a sweet article. Really original and well thought out. Of course, it always easy to say in hindsight I should have bought this stock, but hey, even if you were to buy the stock a year ago you would be up huge!

  29. optionsdude
    April 4, 2011

    It is impossible to predict what the price of AAPL will be in 5 years. Most would like to think that it will be higher. What I do know is that for a 10% premium on the current purchase price, you can buy Apple stock and buy puts good through January of 2013 that will guarantee you won’t lose more than 25% of your total capital.

    I thought this was a wonderful post and very creative, by the way.

  30. Financial Samurai
    April 30, 2011

    Seriously, if only I had dumped my ENTIRE LIFE SAVINGS in APPLE! That would have been so perfect. Ohwell, I’m a steady eddy kind of low risk guy!

  31. dennis@stock trading
    May 27, 2011

    Wow its obvious we would all be a lot wealthier if we were to have opted for the cheap and invested the rest into AAPL! Live and learn I guess. Even though I can’t Live without my iPad!

  32. ross
    June 10, 2011

    I was really close to buying shares of apple when itunes was just starting to make it. I saw a ton of potential there, but i’ve never really been a stock investor and i let it pass by.
    But its always like that when you look backward ;)

    I’ve had alot of really bad investment ideas that i passed up too. I’m pretty happy about those.

  33. Christa
    July 27, 2011

    I love Apple, and my next investment will probably be with the company. I really wish I would have invested in Apple earlier, but I’ll play catch up now!

  34. Chaz French
    August 22, 2011

    You should update this with the current surging stock price.

  35. UltimateSmartMoney
    November 3, 2011

    Now that Steve is gone, do you think Apple stock will start declining? I’m sure it will continue to go up but it’s just a thought.

  36. Financial Independence
    November 24, 2011

    Life is a collection of experiences. Here is some interesting statistics on the shares:

    - Only 202 of the 500 biggest companies in the United States in 1980 were still in existence 20 years later.
    - On December 29, 1989, Tokyo’s Nikkei stock average reached its all-time peak of 38,915.87. Twenty years later, the Nikkei has never again reached that level — and, in 2009, reached a new low of 7,054.98.

    Where would we be with many wonderful projects – Atari, Nokia phones and many others?

  37. Dannielle @ Odd Cents
    January 8, 2012

    This article jumped out at me because yesterday I read a blog post which did something similar. Her comparison was done with the Air Jordan shoes and she said that if a parent had bought $1980 in Nike shares instead of $180 for one pair of shoes per yr for the last eleven years, their earnings would have been approximately $7584… Those figures are crazy tho.

  38. Usiere @Financial Freedom Inspiration
    April 8, 2012

    It is much easier to buy the product than the shares :) Having the product is much more fun! However, the way to financial freedom is paved with delayed gratification and self discipline. You are better off buying the shares

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