AAPL - Apple: How much would $1000 be worth after 20 years?

    APPL - Stock quote for Apple Inc., a company founded by Steve Jobs. It reported better than expected results with double digit growth in earnings. Share price exceeded S400 after the results were announced. 

    Back in June 2000, when the stock did a stock split, retail investor is able to buy ONE apple share at $50. Thereafter, there were two more stock splits, once in 2005 (2 for 1) and 2014 (7 for 1). That ONE share has turned into 14 shares.

    

    Source: https://www.macrotrends.net

    A $1000 investment back in Year 2000 would get you 20 Apple shares, which will turn into 280 Apple shares now, which is worth $112,000 today. That $1000 investment in Apple Inc. compounded at 26.6% per year for the past 20 years!

    This is the power of value investing. Treat your investment as a savings and hold on for as long as possible, if not forever. Investors are not worried about the daily fluctuations. During that 20 years, Apple has gone through the dot com bubble burst, the 2009 financial crisis, which did not stop them to keep bringing in value for investors. If investors then were to be fearful, they would not have achieved the astounding 26.6% rate.

Cheers!

*This post is not asking readers to buy or sell Apple shares now. It is just an illustration on the power of value investing. Readers are advised that all investments carry risks.