Introduction
Apple Inc. is one of the most valuable companies in the world today, but it wasn’t always this way. If you had invested just $100 in Apple back in 1980, when it first went public, how much would that be worth today?
Let’s take a deep dive into Apple’s stock history and find out how a small investment could have turned into a fortune.
Apple’s IPO in 1980
Apple went public on December 12, 1980, with an initial stock price of $22 per share. At that time, the company had already gained attention for its innovative personal computers, but no one could have predicted just how massive it would become.
If you had invested $100 in Apple’s IPO, you would have been able to purchase about 4.54 shares (excluding any brokerage fees). However, this number does not account for Apple’s numerous stock splits over the years, which significantly increased the number of shares held by early investors.
The Impact of Apple’s Stock Splits
Since its IPO, Apple has undergone multiple stock splits:
- June 16, 1987 – 2-for-1 split
- June 21, 2000 – 2-for-1 split
- February 28, 2005 – 2-for-1 split
- June 9, 2014 – 7-for-1 split
- August 31, 2020 – 4-for-1 split
Each split increased the number of shares an investor held. If you had originally purchased 4.54 shares in 1980, these stock splits would have multiplied your holdings significantly. After accounting for all the stock splits, your original 4.54 shares would have turned into over 1,296 shares by 2024.
How Much Would Your $100 Be Worth Today?
Apple’s stock price has grown exponentially over the years. As of early 2024, Apple’s stock price is around $180 per share. If you had held on to your 1,296 shares, your initial $100 investment would now be worth over $233,280 (1,296 × $180).
This calculation does not even include dividends, which Apple started paying in 2012. If you had reinvested dividends, your total earnings would be even higher.
Key Takeaways from This Investment
- Long-term investing can yield huge rewards: Apple’s growth over the past four decades turned a small investment into a massive return.
- Stock splits increase share count but do not change overall value: However, they do make shares more affordable for new investors.
- Patience is key in the stock market: Investors who held onto their Apple stock through ups and downs were greatly rewarded.
FAQs For What If I Invested $100 in Apple in 1980?
1. Would I still have made money if I sold my Apple stock earlier?
Yes, but the amount would depend on when you sold. Selling in the 1990s or early 2000s would still have resulted in profits, but nowhere near as much as holding the stock until 2024.
2. Does Apple still offer good investment potential today?
While Apple remains a strong company, its future stock performance will depend on innovation, market trends, and competition. Investors should always research before investing.
3. What are stock splits, and do they affect stock value?
Stock splits increase the number of shares an investor holds while reducing the price per share. They do not change the total value of an investment but make stocks more affordable for new investors.
4. Did Apple ever face financial difficulties?
Yes, Apple struggled in the 1990s and even faced the possibility of bankruptcy before Steve Jobs returned in 1997. His leadership and innovative products, like the iPhone, helped Apple become the powerhouse it is today.
Conclusion
If you had invested $100 in Apple in 1980 and held onto it, your investment would now be worth over $233,280. This incredible growth showcases the power of long-term investing in the stock market. While no investment is guaranteed, Apple’s journey proves that patience and strategic investing can lead to extraordinary financial rewards.
Would you invest in the next potential “Apple” today? The future of investing remains full of opportunities for those willing to take calculated risks.