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. 

    

What is value investment? Case Study: Walt Disney (DIS)

It was the year 2009. One year after the financial crisis. Some companies got to closed, some were too big to fail and were bailed out. Some, like Disney, decided to acquire Marvel, to build up the company's business.
On the day of the announcement, share price of Disney (DIS) fell 3% to USD26.04 in August 2009. Some investors think that Disney is wasting $4 Billion dollars acquiring Marvel, purchasing 5000 characters created by Marvel in the Comic Universe. And the earnings made by Marvel will not add to Disney until 2012.
Fast forward to 29 April 2019, one Disney share is worth USD139.30, that is compounding at a rate of 18.3% per year.

Investment Update 12 April 2019

Investment update

Results for holding the these stocks for 7.25 years.

Company	1/2/2012	12/4/2019	Total Dividend	Dividend Yield	Percentage Gain/Loss excl. dividend	Compounded Gain/Loss excl. dividend
US-listed Companies
McDonald's	$ 99.39	$ 191.60	$ 26.20	4.37%	92.8%	9.48%
Coca-Cola (2x)	$ 69.70	$ 93.48	$ 17.97	4.51%	34.1%	4.13%
Starbucks (2x)	$ 46.17	$ 153.30	$ 11.40	5.98%	232.0%	18.0%
Walt Disney	$ 38.85	$ 130.06	$ 8.96	4.43%	234.8%	18.1%
Las Vegas Sands	$ 43.76	$ 66.87	$ 19.07	6.90%	52.8%	6.02%
Total Investment	$ 297.87	$ 635.31	$ 13.74	4.61%	83.3%	11.01%

Dear all, 

The above table shows the returns after about 7 years of investment in the chosen stock since we started in January 2012. All prices above are for 1 share.

As you can see, the total dividends collected for past 7 years is $83.60, a good 28% of invested funds.
The 2018 dividend yield for all the chosen shares is 5.24%.

Excluding dividend, our investment value compounded 11.01% for the past 7 years. The best investment is still Disney and Starbucks, both compounding at about 18% for past 7 years.
$10,000 invested in these 2 stocks would have reached a value of $31.854.74 today. If you were to sell the shares of Disney today, you would receive $34,157.46.

Meanwhile, we shall just relax and wait for the next investment update.

Cheers.

Update as 26 September 2018 (3Q 2018)

Investment update

Results for holding the these stocks for 6.75 years.

Company	1/2/2012	9/2/2018	Annual Dividend	Dividend Yield	Percentage Gain/Loss excl. dividend	Compounded Gain/Loss excl. dividend
US-listed Companies
McDonald's	$ 99.39	$ 166.41	$ 4.04	4.06%	67.4%	7.93%
Coca-Cola (2x)	$ 69.70	$ 91.36	$ 2.96	4.25%	31.1%	4.09%
Starbucks (2x)	$ 46.17	$ 113.80	$ 2.20	4.76%	146.4%	14.3%
Walt Disney	$ 38.85	$ 113.63	$ 1.62	4.17%	192.5%	17.2%
Las Vegas Sands	$ 43.76	$ 60.66	$ 2.92	6.67%	38.6%	4.96%
Total Investment	$ 297.87	$ 545.86	$ 13.74	4.61%	83.3%	9.39%

Update as at 11 April 2017

 Savings compounded 10.9% per year for the past 5 years.

 Total percentage gain (excluding dividend) 67.7% in 5 years.

Company	1/2/2012	11/4/2017	Annual Dividend	Dividend Yield	Percentage Gain/Loss excl. dividend	Compounded Gain/Loss excl. dividend
US-listed Companies
McDonald's	$ 99.39	$ 129.98	$ 3.36	3.68%	30.8%	5.51%
Coca-Cola (2x)	$ 69.70	$ 85.38	$ 2.84	4.07%	22.4%	4.14%
Starbucks (2x)	$ 46.17	$ 115.90	$ 1.80	3.90%	151.0%	20.2%
Walt Disney	$ 38.85	$ 112.67	$ 1.49	3.84%	190.0%	23.7%
Las Vegas Sands	$ 43.76	$ 55.56	$ 2.89	6.60%	27.0%	4.89%
Total Investment	$ 297.87	$ 499.49	$ 12.38	4.16%	67.7%	10.9%

Working on a new site.

Dear followers,

I am working on a new site. Will update once it's done.

Cheers.

Growth after almost 5 years of investment

Dear all,

It was another hectic year to rebuild the business, and hard work has paid off.

Company	1/2/2012	2/12/2016	Total Dividend	Dividend %	Percentage Gain/Loss	Compounded Gain/Loss
US-listed Companies
McDonald's	$ 99.39	$ 118.24	$ 16.23	16.3%	35.3%	6.23%
Coca-Cola (2x)	$ 69.70	$ 80.72	$ 11.13	16.0%	31.8%	5.67%
Starbucks (2x)	$ 46.17	$ 114.42	$ 5.37	11.6%	160.1%	21.0%
Walt Disney	$ 38.85	$ 98.50	$ 4.84	12.5%	166.0%	21.6%
Las Vegas Sands	$ 43.76	$ 60.99	$ 11.56	26.4%	65.8%	10.6%
Total Investment	$ 297.87	$ 472.87	$ 49.13	16.5%	75.2%	11.9%

Investment made in 2012 has compounded close to 12% per annum. That is, a $10,000 investment $17,545 after 5 years.

While the economy is showing signs of weakness in the coming couple of years, we should use this as an opportunity to find wonderful companies to invest into.

In my last post, I mentioned to keep a lookout at Burger King (merged with Tim Hortons) and Microsoft ($52.64 to $59.21). Microsoft will still have room for going upwards.

In Singapore, Seng Siong is a good investment but the P/E ratio of 30 is way too high to put your money into. We shall continue to monitor and look at the growth potential of Seng Siong. Meanwhile, it is worth the time to observe OCBC Bank and UOB Bank.

Cheers.

Growth after three and a half years of investment

Hi all, 

Sorry for not being able to the update the blog sooner. It has been a hectic year as I am rebuilding my company's brand after a partnership gone sour. 

Good to be back to give an update on the investments.

I will not be updating the Singapore shares from now till further notice as savings will not grow if we invest in Singapore Companies. However OCBC Bank will be a good investment if you are looking at the banking sector. Any price below S$9.00 is a good buy, which happened a few months back.

On the other hand, US companies are still good to invest in. Starbucks and Walt Disney will continue to grow, hence still a good stock to hold on to. Other companies worth looking out for: Burger King and Microsoft.

Company	1/2/2012	23/10/2015	Total Dividend	Dividend Yield	Percentage Gain/Loss	Compounded Gain/Loss
US-listed Companies
McDonald's	$ 99.39	$ 112.59	$ 12.67	12.7%	26.0%	6.8%
Coca-Cola (2x)	$ 69.70	$ 85.58	$ 8.37	12.0%	34.8%	8.9%
Starbucks (2x)	$ 46.17	$ 125.22	$ 3.67	7.9%	179.2%	34.1%
Walt Disney	$ 38.85	$ 113.09	$ 3.42	8.8%	199.9%	36.9%
Las Vegas Sands	$ 43.76	$ 49.19	$ 8.75	19.9%	32.4%	8.3%
Total Investment	$ 297.87	$ 485.67	$ 36.88	12.4%	75.4%	17.4%
Cheers.

Hi all,

Another year has passed.

I will be using the stock price as at 30 March 2015, to gauge our selected investment for the past 39 months.

Grand Apex Holdings Pte Ltd has offered to buy all Popular Holdings shares at $0.32 per share in March 2015. After this, I will not analyse any more Popular Holdings shares.

Coca-Cola had a 2 for 1 split in July 2012. Hence dividend received after that is multiplied by 2. Share price is also multiplied by 2.

Company	1/2/2012	31/3/2015	Total Dividend	Dividend Yield	Percentage Gain/Loss	Compounded Gain/Loss
US-listed Companies
McDonald's	$ 99.39	$ 97.88	$ 10.12	10.2%	8.7%	2.8%
Coca-Cola (2x)	$ 69.70	$ 81.02	$ 7.38	10.6%	26.8%	8.2%
Starbucks	$ 46.17	$ 95.98	$ 3.03	3.9%	114.4%	29.0%
Walt Disney	$ 38.85	$ 106.12	$ 2.76	1.9%	180.3%	41.0%
Las Vegas Sands	$ 43.76	$ 55.29	$ 7.80	17.8%	44.2%	13.0%
Total Investment	$ 297.87	$ 436.29	$ 31.09	6.4%	45.2%	16.1%
Singapore-listed Companies
Singpost	$ 0.935	$ 1.970	$ 0.200	21.4%	132.1%	32.4%
SPH	$ 3.740	$ 4.190	$ 0.850	22.7%	34.8%	10.5%
Breadtalk	$ 0.550	$ 1.360	$ 0.061	11.1%	158.4%	37.2%
Popular Holdings	$ 0.164	$ 0.320	$ 0.033	20.1%	115.2%	29.1%
Total Investment	$ 5.389	$ 7.840	$ 1.144	21.2%	66.7%	18.6%
Grand Total	$ 303.259	$ 444.13	$ 32.234	10.6%	57.1%	16.2%

Value of investment after 24 months

Dear all,

It is the end of another good year. In this post, we will see how much we have gained for the past two years for the stocks that we have bought in January 2012.

If you refer to the table below. I would say that we have a very good investment portfolio. There may be some changes that we need to make. McDonald's has not been making good progress. This may be because McDonald's have been categorised as a Value Company instead of a Growth Company. The other companies are still able to give us a double-digits growth, hence we should be happy with the growth in our investment.

Our total growth is still good at 20.4% compounded for 2 years. It means that if we were to invest $10,000 in the January 2012, We would have $14,500 today. This $4,500 gain is so much more than the meagre interest that you would earn in fixed deposits. 20.4% compounded gain is also higher that the average inflation of 6% for the past two years. Meanwhile, I am still happy with the current investment and let's see how much we will get at the end of 2014.

Cheers.

Disclaimer: Readers are advised to exercise their own discretion when investing. Stock investment is considered high-risks

Company	1/2/2012	31/12/2013	Total Dividend	Dividend Yield	Percentage Gain/Loss	Compunded Gain/Loss
US-listed Companies
McDonald's	$ 99.390	$ 97.030	$ 6.690	6.7%	4.4%	2.2%
Coca-Cola	$ 69.700	$ 82.620	$ 4.790	6.9%	25.4%	12.0%
Starbucks	$ 46.170	$ 78.390	$ 1.780	3.9%	73.6%	31.8%
Walt Disney	$ 38.850	$ 76.400	$ 0.750	1.9%	98.6%	40.9%
Las Vegas Sands	$ 43.760	$ 78.870	$ 5.150	11.8%	92.0%	38.6%
Total Investment	$ 297.870	$ 413.310	$ 19.160	6.4%	45.2%	20.5%
Singapore-listed Companies
Singpost	$ 0.935	$ 1.350	$ 0.125	13.4%	57.8%	25.6%
SPH	$ 3.740	$ 4.000	$ 0.640	17.1%	24.1%	11.4%
Breadtalk	$ 0.550	$ 0.895	$ 0.033	6.0%	68.7%	29.9%
Popular Holdings	$ 0.164	$ 0.240	$ 0.023	14.0%	60.4%	26.6%
Total Investment	$ 5.389	$ 6.485	$ 0.821	15.2%	35.6%	16.4%
Grand Total	$ 303.259	$ 419.795	$ 19.981	6.6%	45.0%	20.4%