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Investing in gadgets vs. Apple stock
The Apple logo of a store in Munich, Germany.
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Tess Vigeland: And finally, we're not usually big into regret on this program. 20-20 hindsight really does no one any good. But remember how I mentioned earlier about the crazy run on iPads last weekend? 500 to 800 bucks for the latest gizmo from Apple. Well what if, instead, you used that same money to buy two, three shares of Apple stock? How mighty would your orchard grow?
A student at UC Berkeley, Kyle Conroy, has been mulling over this idea. And if you follow his logic, it's time to put down the gadgets and embrace the shares. Conroy reached all the way back to 1997 to see what kind of money you'd have now, if instead of buying a laptop, you'd invested its retail value in Apple stock.
Kyle Conroy: If you had bought an Apple Power Book G3 250, it was originally priced at $5,700. And today in stock value, that would actually be $330,000.
Yes... $330,000. And that original iPod that Kyle just had to have in 2001, when Apple stock was going for just nine bucks a share?
Conroy: It was $300 when I bought it and that would have translated into about $7,000.
No regrets though -- that iPod gave him years of tunes on the go. And for all you early adopters out there who shelled out 500 bucks for the first iPhone, if you'd invested that amount instead, you'd have almost tripled your money -- enough to buy seven of today's iPhones.
Now Conroy claims to have no interest in the iPad, so we put it to him this way: A new MacBook or Mac stock?
Conroy: Maybe I'll buy a MacBook Pro and some Apple stock.
Ah... the heart wants what the heart wants. Conroy's blog lists how all Apple products translate into stock gains.
If even the early adopters of appletech (let alone all consumers) instead purchased Granny Smith stock, the iGadgetry would languish and so would the stock.
Apple stock holders need as many purchases of the early Apple products as possible.
Apple stock holders gaining wealth by purchasing Apple gadgetry. That's funny, the world's most expensive consumer dividend.
Interesting story. I own some apple stock and have been an apple fan from the time of the ipod nano and iphone. I always joke to my friends that i have to help my company grow so i promptly stand in line when a new version of the iphone come out. I havent had a mac ever but i know my next one is probably going to be one( ie if my ipad which entered my life under the disguise of a birthday gift, does not suffice my needs). After all i have to ensure that my apple stock pays for something important.
We are loyal mac users since mid 1980's. We bought stock in Apple in 1996--200 shares at $6.50 per. Stock languished but we hung on loyally and in 1999, in a compromise move when stock had some better times cashed in half to purchase the G4 my son took for college. Seemed like a sound decision at the time. We have purchased a dozen Apple comuputers and ipods, iphones, since without redeeming stock to do so which I am sure accounts for the nice value of our remaining 200 shares (stock splits). I will mention one advantage not mentioned of being a share holder. Mid 2000 we had some problems with one of our itunes accounts and calls to an overwhelmed customer service led to canned, not very helpful responses. An email to the stockholder support address yielded help instantly from Patrick and the problem, not an easy one, was finally fixed after many emails. It was impressive as I still remember our contacts name.
Our last child, a late arrival, will be heading to college within 2 years. The Apple stock will help with that--not purchasing the computer this time but covering the tuition and expenses. We saved for his college but not as aggressively as we did for the older kids as we figured we would be old enough to tap into an IRA without consequences, we are really old--just ask my son, if we needed to. Who knew the stock would provide such a fall back. We may only redeem half at a time though.. .
