Apple’s devoted shareholders get rich, and hang on

“When Anton Marinovich turned 18, his grandmother gave him $1,000 with strict instructions to invest in the stock market. He chose Apple Inc.,” Jessica Toonkel reports for Reuters.

“Seventeen years later, his investment is worth more than $240,000 and will bring him over $1,000 a quarter through the company’s new dividend plan,” Toonkel reports. “‘It’s pretty bananas,’ Marinovich said. ‘I always hear about all these people here in Silicon Valley falling into huge luck, but I never thought it would happen to me,’ said Marinovich, who is the director of sales at Equilar, a Redwood City, California-based executive compensation consultant.”

“Watching Apple shares soar more than 77 percent over the past 12 months has been a wild ride for people like Marinovich, who are firmly planted in the cult of Apple. Between him and his fiancee they own two iPhones, two MacBooks an iPad and 400 shares of Apple,” Toonkel reports. “Many loyalists bought stock years ago when shares languished at double-digit prices. The held on to it out of a love for the company and its products. Now, they are being richly rewarded by a share price of around $600 and a rich dividend payout from Apple’s cash pile of nearly $100 billion.”

MacDailyNews Take: Or single digit prices, even. 🙂 We’ve found that it pays to be “Apple fanatics.” Thanks, Steve, Tim, and everyone else at Apple Inc. who helped take the company from where they were in 1997 to today! We always believed in Apple, thank Jobs!

Toonkel reports, “Nearly two dozen individual Apple shareholders interviewed by Reuters say they are not going on crazy spending sprees or vacations to Fiji, despite the huge windfall they could get by cashing out. Practically none of them said they plan to sell, a loyalty that gives some of their financial planners heartburn.”

“Seventy-one years old Stan Merkin, a retired Dell and IBM programmer whose portfolio has gained about $100,000 just by buying Apple since late last year, said he will buy another 50 shares if the stock hits $650,” Toonkel reports. “‘What I have made in Apple gives me comfort about how I can live in retirement,’ he said.”

MacDailyNews Take: Ah, bask in the sweet irony!

Read more in the full article here.

Related articles:
U.S. Apple investors, beware looming expiration of Bush era tax cuts – March 22, 2012
Apple’s dividend is a gift – March 21, 2012
Apple announces plans to initiate dividend and share repurchase program; expects to spend $45 billion over three years – March 19, 2012

36 Comments

  1. “Practically none of them said they plan to sell, a loyalty that gives some of their financial planners heartburn.””

    Yeah, if they’d listened to their financial planners, they’d have sold ages ago, and missed out on Apple’s growth.

    1. The broker I bought mine from told me over and over again, “…P/E too high, too risky….” He averts his eyes when he sees me these days. And the guy in the story who wants to *wait* for AAPL to hit $650 before he buys more???? Hey, I have a bridge I’ll sell him if he wants a good investment!

      1. …and I should add, my office-mate just came back from an incoming freshman orientation and remarked that the number of parents and kids asking about bringing their Macs on campus – and purchasing them – was higher than he’s ever seen.

        I mentioned elsewhere that the Apple numbers on campus increase each term. This is what I mean when I say forget about AAPL’s stock technicals – just look around at how many people are using the product. There’s your growth indicator. Shareholders will be rewarded nicely in the next couple years or more.

    2. When I opened my account with a new investment firm last summer, my AAPL stock was worth $68,000. My planner advised that I shouldn’t have all of my money in one stock. Now, my AAPL stock is over $125,000, but I’m still not ready to “diversify” my holdings.

      1. I also bought at 68!!!!
        What is our dividend anyway? Not to mention, can that just be re-invested? YOu have 140 shares?

        It’s nice to own some apples!!!

      2. Margined a 1,000 shares in early December …. Wife wanted new car so I was thinking in two months Apple maybe up $30 or so and 1,000 shares would net me $30K less any taxes ……

        Well the Auto Show came after January earnings ….. Apple was up $60 by the time Auto Show hit ……

        Still thinking I will sell and buy a nice car for wife I get hit with a real nice 3 year lease deal …

        Now I’m up $200 a share and all i can say, thank you Car Salesguy for the attractive lease option ….. As I am now up some $195K on my shares ……

        I would of never thunk it could happen ….. I’m still blown away …..

        Meanwhile wife loves her new car and doesn’t even know what happened …… (She is blonde, so no use trying to explain – I love her so much) …..

    3. “Practically none of them said they plan to sell, a loyalty that gives some of their financial planners heartburn.”

      Of course. No commission for those planners when clients don’t buy and sell.

  2. It’s changed my life. I’ve been buying AAPL shares for years and they’ve taken on staggering value.

    And I still recall the “They’re going nowhere” clowns over those same years.

    1. I remember repeatedly recommending Apple to one of our resident Radiologists back in 2002-5 who played the market. He would ask how my investments were doing and I would pitch Apple to no avail. He wouldn’t bite because of the PE ratio.

      He’s in Florida somewhere kicking himself in the ass, I’m sure.

  3. My stock broker did his best to talk me out of investing in Apple just after Steve returned. All I could think was “Oh ye of little faith!” Obviously he didn’t know of Steve’s Golden Touch.

    I followed Warren Buffet’s advice. Buy what you love and believe in. If it’s that good, others will soon believe it too.

  4. Worked a ton of overtime in the early 2000s and put it into AAPL. Held thru intel transition, backdating issue, numerous Steve rumors, etc and now a multi millionaire. Thanks Steve, Jonathan and Tim. The best is yet to come and yes I’m holding.

      1. it was. Many all nighters. Fortunately I worked on a craft where I am paid hourly with overtime. In 2003-2004 invested roughly 60,000. Partly with tax returns. It was difficult due to all the negative stories, but I believed in Apple’s story (still do). I post to inspire others to research companies and their management and invest. Look at it like grading report cards on CEOs or playing fantasy football with companies. A decade ago, I barely knew what I’m doing., with the net, I’ve self educated. Go for it.

  5. Good for him I hope he makes more. But remember, all that profit is on paper. It’s only a profit or loss when you actually sell the stock. Selling along the way up and buying back in on dips would have made many times the profit that he has on paper now. But that does require some involvement and managing your own money. My first Apple was $50. I only wish that I had started earlier. But, I have sold and bought back in countless times over the last seven or eight years. Much better than if I had just held onto the stock all those years. Actually haven’t owned stock in a year, I just use options now it’s much cheaper and the upside is much bigger. It’s a winner! I can’t wait to see how many investing geniuses say that they purchased apple at seven dollars back in 2003! Watch out, here they come!

      1. Come on people, I am sure that this is one of thousands of similar stories. I have 2 grand daughters and we bought them AAPL shares for Christmas and their birthdays. I have been in Apple almost all the time starting with the first shares I got at the peek of the Y2K bubble. Kept buying all the way down. (I was new at it at the time.) I will be retiring this year mainly on what has been made on Apple’s stock.

        There are a lot of shares of AAPL out there and I am sure I am not alone. Think different!

        1. I am recently retired. Partially on my AAPL. It keeps me retired. Very nice. I dread the thought of ever going back to work unless I want to. I’m long AAPL, at least for the foreseeable future. I love Apple stuff. Have owned for decades. But remember the first rule of investing : never fall in love with a stock. I learned the hard way years ago with YHOO and JDSU. Ouch! Yes it can happen to any company no matter how much you love it. Love your stuff but be careful with your money. Options, it’s just so much easier.

          1. GM, I could have made more by buying on the dips but I can’t time trades, especially regarding Apple. Only recently has the stock acted rationally short term. Most often the. Stock was indifferent to good news and went up when nobody was looking.

  6. Never ever listen to finance and stockguys. They’re conservative and the hlast adaptors of new technology. During the last it-bust, a friend became the CFO of a an it company and didn’t even have internet at home himself. A few other friends were at the same time talking about online shopping dreaming up oportunities, I asked ” what have you ever bought from the internet?” silence, yet these venture capitalists poured money into different projects. I love the dudes, but they’re clueless. One of my favorite quotes is about the future: ” some people make it happen, some people let it happen and some people wondered what happened”. Thank you Steve for the first, I am humbly among the second with open mind and arms, and there’s a whole lot of dumbf*cks in the third category. Ignore them.

  7. You know, there are those “who do” and those “who wish” – I’d been beating the drum for *YEARS* at work about buying apple stock… Moved my IRA funds to accommodate purchases of apple – starting in the $90s area, and continued with some other dividend monies coming into the ira account every quarter. Been buying all the way up.

    *MANY* times certain folks would come to me and say (when apple was at $200) – “I wish I’d have bought at $100….”

    then when it’s $300 – they ( the same folks) would say “I wish I’d have bought at $200….”

    etc etc

    what can you say to folks like that?

    nuthun

  8. This is why I like it when people say that Apple’s success is because of voodoo marketing and brainwashed fanatics: The more competitors “don’t get it” about Apple, the more surprised they are when we profit.

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