Forbes: Apple Computer was a very smart investment in 2005 with 103-percent total return

“At this time last year, we asked our readers which technology hardware and equipment company they believed would be the smartest investment in 2005. The most popular answer? Apple Computer. Of the more than 12,000 readers who cast their vote, 27% chose the Cupertino, Calif.-based computer and software company. That’s nearly double the number of votes the two runners up, Dell and Cisco Systems, received combined,” Lacey Rose reports for Forbes.

“We hope our readers put their money where their mouths–or mice–were. Apple (AAPL) was a very smart investment. The company posted a 103% total return for the latest 12 months–spectacular compared with the S&P 500 total return of 9%,” Rose reports. “Unfortunately, our reader’s number two pick–Dell (nasdaq: DELL – news – people )–was a dog. The company’s total return was -25%–the worst of the bunch.”

Full article here.
More reason to smile this holiday season. Will Apple pass Dell in market value in 2006? Currently it’s AAPL at $61,817,032,800 and DELL at $73,359,280,740. Stay tuned…

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19 Comments

  1. HEy it didn’t take me 20 minutes to write that small message, what gives? :p There were no posts when I first came here :p

    MDN Magic Word, “efforts”

    As in my efforts were futile in my pathetic attempt to be a looser :p

  2. That would be sweet after Michael Dell’s comment about Apple closing up and giving shareholders their money back. Apple filled plenty of stockings for its shareholders this year.

    MDN Magic Word: help, as in what Dell is looking for as it realizes that the Apple locomotive is bearing down on them.

  3. But the only market cap that matters is Microsoft’s. My best guess is that in early 2008, Apple will surpass them. But what then? To really go out on a limb, I’d say that Steve Jobs becomes the permanent Chairman of the Board and Jonathan Ives becomes CEO. Call me crazy but the most recent Time article on Apple clearly had photos of Steve and Jonathan that suggested this.

  4. Somebody made a mistake.

    Apple did not make 103% gains.

    Their stock (adjusted for split) opened 2005 at 32.20 Today it sits at 73.35. That’s just shy of 130% gains for the year (with a few days left)

    Yes, AAPL was a good investment in 2005.

    Will it be a good invensment in 2006? I think so. In fact, I’m expecting gains greater than what we have seen in 2005.

    My money IS where my mouth is.

  5. Remember that past performance of a stock is no indication of future performance. Just because AAPL went up 103% (or 130%) this year does NOT necessarily mean that it will double again next year. The stock is currently trading at 47 times the company’s earnings. That means the company’s earnings would have to go up 47 TIMES in order to match the market’s value for the stock. Perhaps this is a good time to sell and enjoy your profits instead of hoping for another wave to ride?

  6. speaking of apple stock, I was watching forest gump today, and when he gets rich with apple stock is around the year 1979. correct me if I am wrong, but I believe that the company didn’t boom until around 1984…

  7. The Dell story is going to be INCREDIBLE in 2006

    watch Thurrott and Enderle sputter over the marketshare story..

    er.. but.. Apple.. also.. sells.. software… and..er.. iPods..and.. er…servers.. how can this be??

  8. The 47 P/E multiple does NOT mean that Apple’s earnings would need to go up 47 times to justify the current price of the stock. While it is true that a more typical historical multiple would be about 17, give or take, the market is (properly) pricing in projections for Apple’s growth. It assumes that Apple is well-positioned to more than double or triple its profits, even as it continues to increase its net assets (e.g., their cash hoard). Given not only Apple’s recent track record, but also reasonable projections for new products, my sense is Apple is still UNDER-priced, so I’m still buying. I’m glad there are still some in the market who are underestimating Apple, because it means the rest of us still have an opportunity to make $$.
    Cheers in the New Year.
    Jake

  9. Will Apple pass Dell in market value in 2006? Currently it’s AAPL at $61,817,032,800 and DELL at $73,359,280,740. Stay tuned…

    To do so, AAPL has to appreciate in value to $86/share, without DELL gaining any traction.

    uhhh, this is going to happen before options expiry in January (less than 30 days from now). Won’t that just piss off Mikey something terrible?

    What a great way to start the new year.

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