Investing in Apple: How a $10,000 Bet 44 Years Ago Could Have Made You a Multi-Millionaire

Appleās initial public offering was a once in a generation event. When the computer company from Cupertino, California, began trading on the Nasdaq on December 12, 1980, it was the biggest IPO since the Ford Motor Company went public in 1956. As The Wall Street Journal famously put it, āNot since Eve has an Apple posed such temptation.ā
The hype proved to be entirely justified. Apple is today the largest company in the world, becoming the first firm to reach a $3 trillion valuation in 2022āfour years after it was the first U.S. corporation to surpass the $1 trillion threshold. Those who bet on Appleās success 44 years agoāand even much laterāhave been richly rewarded.
If you had invested $10,000 of todayās dollars in Apple when the company went public at $22 a share, your investment would now be worth $32.7 million, according to calculations by Fortune using data from S&P Capital IQ. The analysis accounts for Appleās five stock splits and assumes the reinvestment of all dividends, based on the stockās price at close Wednesday.
The gains are impressive in comparison to the broader market. Since November 1982, the earliest that data from Bloomberg is available, Apple shares have yielded a total return of 20% on an annualized basis. That number is 12% for the S&P 500 over the same span, meaning Apple has grown nearly twice as fast on average each year.
Warren Buffett Cashes in on Apple Gains
Even investors who got in decades after Apple went public have witnessed huge gains. This includes Warren Buffett, whose $40 billion bet on the company, including purchases from 2016-18, has paid off handsomely for Berkshire Hathaway shareholders.
At the end of the last year, Berkshireās Apple holding was worth $174.3 billion. The Oracle of Omaha has sold off more than two-thirds of that position since, but Berkshireās 300 million Apple sharesāworth about $74 billion as of Wednesdayās closeāremains the largest piece of the conglomerateās portfolio.
Berkshireās position at the start of 2024 would currently be worth over $220 billion, but Buffett likely wonāt fret about missing the upswing. Stock sales propelled Berkshireās profits to $26.25 billion last quarter, compared to a loss of $12.77 billion during Q3 a year ago. As Fortuneās Shawn Tully recently noted, Buffettās Apple gambit will likely go down as one of the best wagers in the storied investorās career.
For those who have held on to the stock for even longer, December 12 is an anniversary worth celebrating.
- #apple
- #investment
- #warrenbuffett
- #stockmarket
- #finance
Comments Ā· 0