Apple stock is making regular Americans rich

“Being an Apple fan has paid off handsomely for Alex Gerb,” Heather Long reports for CNNMoney.

“He doesn’t just own the products, he owns the stock. He’s made close to $50,000 since he first bought Apple shares in 2007,” Long reports. “While working his way through college in Maryland, he took all the money he had to his name — about $4,000 — and bought the stock. Friends thought he was a little nuts. Now they kick themselves for not following his lead.”

MacDailyNews Take: Smart guy, than Alex Gerb!

“Gerb is hardly alone. Apple is one of the most popular stocks on the planet. People are making big money off the stock’s phenomenal rise in the last decade.
In January 2005, the stock was trading for around $5 a share,” Long reports. “Today it’s worth about $130 a share and is the most valuable company in the world.”

Much more, including gripes about Apple’s “skimpy” dividend, in the full article here.

MacDailyNews Take: Success stories? On paper or realized, let’s hear ’em!

We’ll start: In 1997, a friend remarked that he had some $32,000 in his checking account that wasn’t doing much for him. The money coming in was good and he was just adding it to his account. It was earning no interest at all; it was just sitting there. We discussed the recent return of Steve Jobs to Apple and how, perhaps, that $32,000 might be better put to work by investing in AAPL. Our friend did just that, he purchased $32,000 of AAPL shares in August 1997 and still holds the vast majority of those shares today. That investment turned out alright, huh?

44 Comments

  1. I bought 100 shares of Apple in 1999 for about $2000. I still have that investment, and I’ve added shares on dips over the years. I’m retiring. I’m 58 years old. Yeah. Apple has been very, very good to me.

    1. According to my brokerage account, some of my AAPL shares have unrealized gain of more than +6500%. No other investment I’ve made (including home purchase) comes remotely close. Unfortunately, the initial amount was not very large, and I did sell about half of those original shares along the way (to buy actual things). But what I still have in AAPL, including shares purchased more recently (which are “only” up about 300%), is quite significant.

  2. In 2000, I made my first investment in AAPL with my last $400. I made that purchase over a pay-phone via the nascent eTrade.

    Since then my wife and I have invested in AAPL at every opportunity, including re-investing dividends.

    Today our AAPL stake is worth well over half-a-million and composes two-thirds of our investment portfolio. (I want to be invested 100% in AAPL, but my wife prefers diversification to spread risk, so this is our compromise.) GO AAPL!

  3. I invested $18,000 in APPL from a locked in retirement account with a post-split cost of around $85 a share and now have 231 shares. Seemed crazy at the time, but my initial investment coupled with the low CDN $ has almost doubled.

    1. I’m Canadian as well and bought 160 shares for about $25,000 in 2006 or 7. I’ve sold a bunch since but still hold 600 shares. The Canadian dollar drop has been incredible to my AAPL and my Berkshire Hathaway.

  4. not only Americans!
    I bought my first Mac in 1995, and then Apple shares in March 1997 when I saw that with NeXT, Apple had a future.
    Today these shares have made a factor 200.

  5. I bought about 450 shares in two trades when the price was $49 and subsequently $75. I put all my spare money into AAPL, despite being advised that I should spread the risk. I had tracked AAPL as a virtual stock for a couple of years before I bought in and wished that I had bought the shares when I first had the idea.

    Just over two years ago, I moved house and by selling 400 of those shares when the price was over $600, the profit made an immense difference to the quality of house I was able to buy. The stock that I had been advised to buy to spread the risk turned out to be a dud, so I’m glad I ignored that ‘expert’.

    Shortly after I sold my AAPL, the stock plummeted and I was able to buy more at a very favourable price.

  6. I had a bunch of shares that I had to sell about five years ago. Had I held them they’d ‘be worth about $700,000 now. As it is, I still have about $110,000 in AAPL, representing a profit of roughly 160%. I kick myself when I think of what I sold, but console myself by reminding myself that I still have 810 shares and a very nice profit, with (having learned my lesson) no plans to sell my stock for a very long time.

    1. I wouldn’t spend too much time worrying about what you had to sell. I have made oodles of dough in this stock. Spent almost all of it on my family. That is what money is for. Life will supply you with an endless supply of regret if you bend over and pick it up. Don’t do that. Me, instead, I look to the stars and smile.

  7. In 2007 I dumped an old 401k worth about $25,000 into Apple stock. Since then, I’ve invested more and more. Now have almost 2700 shares. My Fidelity account keeps track of the gains of each lot. So far, I’ve made over $190k in profits from my initial investments. (I reinvest all dividends). This will help pay off the nursing home bills I’ll probably accrue years down the road 🙂

  8. “Since then my wife and I have invested in AAPL at every opportunity, including re-investing dividends.”

    My wife and I, too, BD: we’ve invested $71,000 in Apple, Inc. (no dividends) since 1988, amid the ear-splitting catcalls of all my “oh-so-savvy-and-successful” friends. We now hold 39,900 shares of AAPL, for a per-share cost of $1.78. And so who has the last laugh now? Our professional portfolio advisers now call us “tech moguls,” forgetting that at every meeting over the past 25+ years, they’ve recommended dumping the stock. So much for “insider knowledge,” huh? Know, believe, commit, and hold.

    1. From the article: “Friends thought he was a little nuts. Now they kick themselves for not following his lead.”

      As someone who has also profited from AAPL, I say let’s be clear: Just because your bet has paid off handsomely does not mean you were not a little nuts.

  9. Bought my Apple stock in 1984 when I got my first Mac. With splits it was about $0.50 a share. Kept it primarily to teach myself that I had no idea what I was doing. I didn’t.

  10. I started buy AAPL in 1998 and have bought shares when I could over the years. After 17 years and three splits I now have 8100 shares worth over $1M! Apple has definitely been good to me.

  11. I bought 1,000 shares (now 7,400 with dividend reinvestments) in 2006 for $60,000. I bought another 1,000 shares in 2007 for $100,000, but then (stupidly) sold that lot after Steve took his first medical leave. I still have the first lot. When the stock hits $168.92, I sell and net $1M after taxes. It will fund my vacation home, which will become my retirement home in 10 years, with enough left over to pay the real estate taxes for 20 years. All because of the brilliance and vision of one man who built an incredible team of creative and talented people.

  12. I bought AAPL using a five year dollar cost average approach, making forty four separate purchases. Have over ten thousand shares now.

    A great comfort.

  13. I also invested a couple paychecks worth in AAPL soon after Jobs returned to Apple, and have continued to invest more over the years. Over the past year, AAPL has paid for a new house and a new truck, and I still could retire now if I wanted to. PRAISE STEVE, AMEN!

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.