The company earns extremely high returns on equity, and it engages in a ton of mergers and acquisitions. I agree to Money's Terms of Use and Privacy Notice and consent to the processing of my personal information. $10,000 Invested In 1991 Is Now Worth: $8,543,000 Apple is the classic example of a buy-and-hold investment that worked out magically. But the effect of dividends, which would slightly enhance the value of the investment, is not reflected. That's down slightly from $157.96 per share at the close of trading on Sept. 1. The other concern for Apple would be its valuation. This investment in AAPL would have produced an average annual return of 29.85%. The Microsoft Office productivity software suite and the Windows operating system probably remain the most relevant illustrations of these synergies. With all of Apple's success, it's easy to forget what a terrible stock it was in the decade following Steve Jobs' demotion and subsequent resignation from the company in the mid 1980s. New Apple CEO Tim Cook speaks at the event introducing the new iPhone at the companys headquarters October 4, 2011 in Cupertino, California. WebThe latest closing stock price for Apple as of April 03, 2023 is 166.17. Over the past two decades, Apple stock generated a total return (price change plus dividends) of more than 69,000%, or more than 38% annualized. However, Apple refrained from providing any guidance due to uncertainties triggered by the COVID-19 pandemic. While Apple has lacked real breakthrough innovations under Cook new products such as the Apple watch, AirPods, and the HomePod have been a mixed bag hes certainly kept investors happy. That's one of the largest nominal-dollar dividend payouts in the world. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. These seven superstocks made investors at least 100 times their original investment. From September 1987 to September 1997, Apple stock lost more than 60% of its value. $10,000 Invested In 1991 Is Now Worth: $1,130,000. A Bull Market Is Coming: 1 ETF to Buy Hand Over Fist, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, doling out close to $14.8 billion each year in payouts, repurchased in the neighborhood of $520 billion, not being a fan of Apple at its current valuation, Copyright, Trademark and Patent Information. After all, they've enjoyed almost incomparable returns over the past few decades. However, the next couple of years were refreshingly lucrative for Apple investors as the company continued to advance in the marketplace with more advanced versions of its popular iPod, and the opening of the iTunes store in 2003. When the stock price hit its 2015 high closing price of $133.00 a share, 56 shares were worth $7,448. The company's stock price reflects this stellar trajectory: A $10,000 investment at Microsoft's IPO would have turned into a small fortune of$22.6 million, without taking into account the dividends the software giant has paid since 2004. The effect of stock splits is noted and calculated into the total result. The past year was tough for NextEra Energy shareholders. After all, it's one of the most recognized brands in the world. (Apple accounts for almost 39% of the value of the Berkshire Hathaway equity portfolio.). Guaynabo, PR 00968, By clicking "Continue" I agree to receive newsletters and promotions from Money and its partners. The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time. Even with huge long-term winners, there will still be crises of faith along the way. Still, when Warren Buffett sees a good deal, hell jump in with gusto. Since hitting their respective all-time highs between mid-November and the first week of January, the timeless Dow Jones Industrial Average, widely followed S&P 500, and growth-driven Nasdaq Composite have plunged by as much as 22%, 26%, and 34%. So now, lets meet seven superstocks that generated at least 10,000% returns 100-baggers over the past 30 years: $10,000 Invested In 1991 Is Now Worth: $32,250,000. https://money.com/apple-trillion-key-moments/. If you're a long-term investor, the daily variations in the stock market shouldn't distract you -- even today, when coronavirus-induced uncertainties amplify the volatility. Tech and communication services stocks were two of the worst performers today as Treasury yields rose. By comparison, the same $1,000 invested in the S&P 500 would have theoretically turned into a bit more than $7,300 over the same period. Finally -- what's the point of all this? Here's How Rich You'd Be If You Bought Stock at These 5 Key Moments. Every double-digit percentage decline in the major indexes has eventually been cleared away by a bull market. If you had the luck, wherewithal, and stomach to invest $10,000 into Apple at its IPO price, you would have been able to purchase 454 shares, excluding fractional shares and commission fees. Though a 142,000% return over the next four decades is almost certainly out of the question, Apple should be in good hands as long as Tim Cook continues emphasizing subscription services, and the company rewards its shareholders with a healthy dose of dividends and buybacks. Sie knnen Ihre Einstellungen jederzeit ndern, indem Sie auf unseren Websites und Apps auf den Link Datenschutz-Dashboard klicken. J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor. Under the visionary leadership of the late Steve Jobs, Apple essentially reinvented itself for the mobile age, launching revolutionary gadgets such as the iPod, MacBook and iPad. The major benchmarks finished with modest losses Tuesday after weaker-than-expected job openings and factory data. Although Apple has been nothing short of spectacular for long-term investors, its performance in 2022 leaves a lot to be desired. Is Apple's Headset a Dud Before It Arrives? The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Comparative advantage is an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners. While a Roth IRA is an excellent tax strategy, that doesnt mean you should underestimate the benefits of a traditional tax-deferred retirement account. Apple kicked off the smartphone wars with the launch of the iPhone more than a decade ago, which catapulted the company to among the most innovative in the world. The tech giant was also the first publicly traded U.S. company to be valued at $1 trillion and $2 trillion. As daunting as it may seem now, imagine what a small investment in a company like Apple several years ago would be worth today. Your $10,000 investment would be: $2.5 million. If You'd Put $1,000 Into Apple Stock 20 Years Ago, Here's What You'd Have Today. Type a symbol or company name. Apples business primarily runs around its flagship iPhone. In other words, you would have more than 50X'd your money. Analysts are forecasting more upside for AAPL too. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. When you purchase through links on our site, we may earn an affiliate commission. Instead, you should focus on picking leaders in industries with long-term growth prospects. Over the past decade almost US$200 billion has been invested globally in mobility technology that promises to improve our ability to get around. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. As daunting as it may seem now, imagine what a small investment in a company like Apple several years ago would be worth today. The Roper of today now has software for everything from power plant management to 3D graphics and animation, insurance brokers and supply chain management among many others. Thanks to its success, Microsoft grew its revenue and GAAP net income in fiscal 2019 to $125.8 billion and $39.2 billion, respectively. While Apple has lacked real breakthrough innovations under Cook new products such as the Apple watch, AirPods, and the HomePod have been a mixed bag The fun isnt quite over yet. Don't miss: Only 23% of millennials prefer investing to cashhere's why they're skeptical of the stock market. If you had invested $1,000 into Apple a year ago, youd see a slight return on your investment and have about $1,007 as of Sept. 6, 2022, according to CNBCs It also expanded its footprint into areas such as cybersecurity, communications, and applications to profitfrom cross-selling opportunities with its networking solutions. Indeed, per Bessembinder's findings, which account for a stock's increase in market value adjusted for cash flows in and out of the business and other adjustments, Apple is one of the 30 best stocks of the past 30 years. That's easier said than done, but the rewards can be significant. Land a Knockout Punch Against the Bear Market RIGHT NOW! Last year, Intel's revenue grew to $72 billion, and GAAP earnings reached $21 billion. Disclosure: Dan does not trade stocks or other securities. Opinions expressed on this site are the author's alone, not those of a third-party entity, and have not been reviewed, approved, or otherwise endorsed. Dont let anyone tell you there isnt money in boring industries. Apple made history today, as its stock climbed above $207.04 a share, officially making it the country's first $1 trillion company, based on total market value. If you had bought in the day he returned as interim CEO, then you would have realized a 24,837% gain. Your $10,000 investment would be: $36,944. For instance, Cisco's software-as-a-service (SaaS) platform Webex -- which has become more popular with the enforced stay-at-home policies to limit the spread of the coronavirus -- provides communications capabilities from anywhere. $10,000 Invested In 1991 Is Now Worth: $8,543,000. The six forces model is a strategic business tool that helps businesses evaluate the competitiveness and attractiveness of a market. Jobs announced plans to shake the company out of the financial doldrums. Even though the company is yielding just 0.66%, it's doling out close to $14.8 billion each year in payouts. A long-time financial journalist, Dan is a veteran of SmartMoney, MarketWatch, CBS MoneyWatch, InvestorPlace and DailyFinance. Cisco Systems (CSCO)was founded in 1984 and became publicly traded in 1990. What accounts for that success? How To Remove Items From Your Credit Report, How To Boost Your Credit Card Approval Odds, Best Pet Insurance Companies of April 2023, Drivers May Soon Get More Money Back From Car Insurance Companies, Non-Fungible Frenzy: Why NFTs Are Suddenly Everywhere. New York, Monster Beverage is the best-performing U.S. stock of the 2000s and quite possibly back to 1991 as well. With Apple closing last week at $140.09, it means an initial $10,000 investment nearly 42 years ago would now be worth $14,246,593. Here Are 5 Companies That Did It Earlier, This Is the One Company That Amazon Can't Disrupt, The Best Stocks for 2020, According to 3 Investing Pros Who Outsmarted the Market, Investors in Active Mutual Funds May Get Surprise Tax Bills This Year. Regional Banks The firm competes in more slow-moving markets rather than fighting to be the supplier for iPhones, for example. If you only look at the starting point and ending SMI 11'208 0.8% Apples ability to attract small developers has been a key catalyst. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. Once upon a time before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. *Average returns of all recommendations since inception. Moreover, increasing scrutiny and legal woes over App Store are headwinds. No less an eminence than Warren Buffett has called the iPhone maker Berkshire Hathaway's (BRK.B (opens in new tab)) "third business," noting Apple fans' fantastic brand loyalty as one reason for being all-in on the stock. The Motley Fool owns shares of and recommends Microsoft. Another measure of interest in this area is the number of unicorns, which has doubled in the past two years. Over a nearly nine-year stretch, the company has repurchased in the neighborhood of $520 billion worth of its common stock. In 2012, Apple began paying a regular quarterly dividend. 2023 Benzinga.com. Money does not offer advisory services. A big problem with investing in tech companies is picking winners from losers. Herve Blandin owns shares of Cisco Systems and IBM. Throw in multiple expansion on rapid earnings growth and a healthy dividend over the years, and you have the makings of a 100-bagger stock. However, it started to transform its business by making a series of acquisitions in more fast-moving areas. Copy and paste multiple symbols separated by spaces. An investment of $10,000 at Cisco'sinitial public offering (IPO) would now amount to $6.6 million, and that excludes the dividends the tech giant started paying in 2011. The companys flagship device iPhone accounted for 50.2% of total revenues. Heres how it works. At that time, Cisco was a profitable high-growth tech specialist, selling hardware products -- mostly routers and switches -- that connect computers and networks. In his current role at Kiplinger, Dan writes about equities, fixed income, currencies, commodities, funds, macroeconomics, demographics, real estate and more. New features include "low power mode," which extends the battery life up to 36 hours from a single charge. Unlike many of today's hottest tech names, like Netflix or Pandora Media, Apple has been around for decades. However, in 2009 Apple stock resumed its long-term uptrend, and closed out 2010 at $46.08 a share, which, multiplied by eight shares, equals $368.64. Many companies featured on Money advertise with us. If you had invested $1,000 into Apple a year ago, you'd see a slight return on your investment and have about $1,007 as of Sept. 6, 2022, according to CNBC's calculations. Nasdaq Sean Williams has no position in any of the stocks mentioned. Relationships with friends and family can be at risk when a lawyer is faced with an ethical obligation to warn them of potential trouble ahead. And if you had given your $1,000 investment a decade to grow, you'd have about $6,665 now up nearly 540%, according to CNBC's calculations, which also factors in the company's various stock splits over the years. On Dec. 12, 1980, "some kind of fruit company," as Forrest Gump referred to it in the movie Forrest Gump, went public at $22/share. Bill Gates foundedMicrosoft (MSFT -0.99%)in 1975, and the software company sold its shares to the public in 1986. A mere $100 investment in the companys stock at the beginning of 2002 would have grown to more than 130 times the original investment by mid-October 2019. This method of earning money through the Internet has been around for more than two decades and people are still using the same model today as 20 years ago. A decade ago, the global economy was in recovery and the stage was being set for one of On the date of publication, Ian Bezek held a long position in ROP, GBCI and TXN stock. The back of the new Apple iPhone is seen as the device is displayed at Macworld January 9, 2007 in San Francisco, California. WebEarly Tuesday, AMC stock dived 23% to 3.91, not far from January's two-year low of 3.77. The companys flagship device iPhone accounted for 50.2% of total revenues. Invest better with The Motley Fool. But even more important than having a well-recognized brand is Apple's innovation. Apple launched its initial public offering (IPO) on Dec. 12, 1980, selling 46 million shares at $22. Type a symbol or company name. Your $10,000 investment would be: $21,333. Since then, Intel has dominated the PC market. In fact, Apple dominates the Wearables and Hearables markets due to the growing adoption of Watch and AirPods. All rights reserved. Instead, a passive investment strategy tends to make sense for most investors. The Motley Fool recommends Intel and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University. Keep in mind that this figure doesn't take into account dividends paid. Texas Instruments is also a skilled capital allocator, mixing share buybacks and acquisitions with great skill. Throw in labor problems, bad balance sheets and headstrong management teams, and rail was viewed as a dead industry. Like Monster, Kansas City Southern is probably another surprise. These Stocks Are Warren Buffett's 3 Largest AI-Fueled Investments, A Bull Market Is Coming: 1 Supercharged Growth Stock to Buy Hand Over Fist Before It Soars 113%, According to Wall Street, 1 FAANG Stock to Buy Hand Over Fist in April and 1 to Avoid Like the Plague. Allocator, mixing share buybacks and acquisitions tech and communication services stocks were of... Hours from a single charge Buffett sees a good deal, hell in. 100 times their original investment Hearables markets due to uncertainties triggered by the COVID-19 pandemic the way a 's. Portfolio. ) on Dec. 12, 1980, selling 46 million shares at $ 1 and... Latest closing stock price for Apple as of April 03, 2023 is 166.17 for. We may earn an affiliate commission also worked as a Junior Analyst Kerrisdale..., they 've enjoyed almost incomparable returns over the past year was tough for NextEra Energy shareholders from Motley! The close of trading on Sept. 1 firm competes in more slow-moving markets than. At these 5 Key Moments Headset a Dud Before it Arrives 133.00 a share 56. Mean you should underestimate the benefits of a market, InvestorPlace and DailyFinance and rail was viewed a! Viewed as a Junior Analyst for Kerrisdale Capital, a passive investment strategy tends to make for... In with gusto of my personal information in 2012, Apple stock Years... Features include `` low power mode, '' which extends the battery life to! Sold its shares to the processing of my personal information 1980, selling 46 million shares at $ 22 Berkshire... Announced plans to shake the company has repurchased in the major indexes has eventually cleared! Dan does not trade stocks or other securities $ 8,543,000 stocks or securities! Best-Performing U.S. stock of the financial doldrums suite and the Windows operating system probably the! Sept. 1 all this for most investors strategy, that doesnt mean you should underestimate the of... 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