Lets go back in time. It’s the year 2014 and the month of June. Warm days. Ahh.. after a very cold winter we were all beginning to enjoy the bright days of Sun. And then, you just had some cash to spare, let’s say $5000 to be exact. What can you do with this? Europe’s calling….. perhaps a cruise? How about that new sofa or even that gold & diamond set? Hmm.. all of that sounds so satisfying. But what if I say, if that hypothetical cash was invested (yes, I know right..) and invested in Apple stock.
In the early days of June 2014, before June 8 when Apple stock was split 7:1, the price was ranging about $620 a share. You might have bought a mere 8 shares, which might seem like you are not getting many shares, especially when you are putting down an amount of $5000. Europe or the cruise or something else may have seemed more appealing, after all life is about experiencing great things. Totally agreed. But if you follow me, the point I am trying to make is investing gives you flexibility with your money and there by gives you more choices to have great experiences.
So, if you would have brought those 8 shares of Apple before June 8 2014, then after the split on June 8 2014, the number of shares would have become 56 (because of 7 to 1 split). Let’s say you bought them and never sold them. Apple split their shares again and this event took place in September 0f 2020, in the middle of pandemic, and you now have 224 Apple shares. This is because this time the split was 4:1.
So with the current market price, assuming you still haven’t touched those shares, the amount you would have today is around $32480. So there you have it, $5000 invested in June 2014 in Apple stock is worth at least 6X more than what was invested that day and I think that’s a pretty cool return and you also didn’t have to worry too much about the ups and downs of stock market either..
As Warren Buffett said once “Beware the investment activity that produces applause; the great moves are usually greeted by yawns”.
Happy Investing Folks….!!
