BUYING STOCK IN APPLE
2003. I was gearing up to graduate high school. I didn’t go to a fancy school, even though it was a private school. Only ONE kid in my graduating class got a BMW. We were POOR. If I wanted something, I was the kind of kid who looked at how much stuff cost before making a decision. I would weigh how much I wanted the item vs how much it would deplete my precious, precious savings. And then … I would look for a cheaper option.
I never really fit in with the “it” crowd. I didn’t have to have whatever everyone wanted, even if a holiday or birthday was approaching. I would almost always opt for the money. So, when the first generation iPod came out in 2001, I opted for the cheaper Creative Nomad II option. It came wrapped in that stiff plastic that required scissors to open. Not some fancy iPod box. But it was also, like, sixty bucks. And no, it didn’t hold 1,000 songs. But I rationalized that I didn’t need 1,000 songs in my pocket since I only really listened to Metallica. They didn’t have 1,000 songs.
But just because I opted out didn’t mean everyone did. On the contrary. EVERYONE got an iPod. It was the hot shit rock 'n roll item. Their laptops were straight fire. I was looking around. Something was happening with Apple. They were becoming … cool.
So, while those snobby assholes at the fancy college prep schools were getting BMWs, I had one thing on my wish list: an Apple Powerbook. I mean, we’re talking about 2003. Tech wasn’t that amazing back then. But even I knew that computer was something special.
I had a few thousand in savings from all those various odd jobs I’d done as a teenager. And I knew just how I wanted to spend almost all of it. I wanted to buy 300 shares of Apple stock, which, around 2003, was trading for $9 a share. That’s not a typo. It was nine dollars. A share.
I called my mom’s broker and made my case. “Everyone has an iPod. Everyone has a Powerbook. I want 300 shares of apple.”
Even back in ‘03, this broker was OLD AS FUCK. His response? “Don’t waste your money.” And it is true. Up until that point, Apple was a loser computer company. They weren’t always hot shit. They were a penny stock for decades. But the times were changing and I wanted in.
“Apple is a niche product,” he cautioned.
Actually, we know today that niche products are the best products because they create a loyal fanbase that will continue to come back over the years.
“Nobody is going to want to buy MUSIC over the COMPUTER!” He cautioned.
I didn’t know much, but this didn’t seem right. Everyone I knew was buying music over the internet. They were downloading them onto their iMac laptops or Powerbooks and uploading their songs onto their iPods.
“You’re making a mistake,” he cautioned. “Think about it for a week and then call me back.”
A week later, Apple stock had gone from $9 to $12 and I felt like my world was crumbling. At $9 a share and $3,000 in the bank, I could have purchased exactly 300 shares with a little left over. But at $12, I could only purchase 250 lousy fucking shares. But this broker thought even 250 shares was too much. I was pissing away my money on a historically loser of a company.
“If you want 100 shares … I think we could work with that.”
Pushed into a corner, I accepted his offer and purchased 100 shares of Apple at $12.
What happened next was astounding. Apple began to soar quarter after quarter. It went from $12 to $90 to $200. I couldn’t believe it. All I could do was calculate how much I WOULD HAVE MADE had this foolish broker allowed me to purchase the 300 shares I initially wanted. Remember, kids: Always listen to professionals. They know best. 🙄
And then, the recession hit. It was 2008 and my precious Apple stock began to drop. Quarter after quarter, Apple crumbled until it was $69 a share. I called the broker to ask what to do.
“SELL IT!” He screamed into the phone. “LOCK IN YOUR PROFITS! GET OUT!”
I hesitated.
At $200 a share, my profit was $18,800.
At $69 a share, my profit was $5,700.
Still a significant profit, but … really? Sell? He was a professional, after all. And I was just a stupid 20-something.
“Okay,” I said. “Sell the 100 shares.”
What happened next was even more astounding than the first go round. Obama did everything in his power to get us out of the Great Recession. Things started to turn around. And Apple stock began to skyrocket. Straight up. Never looked back. It went all the way to $700 a share. I was ill. Literally ill.
At $700 a share, my profit would have been $68,800.
At $700 a share, my profit on the 300 shares I initially wanted would have been worth $206,400.
I know: Don’t look back. But in this case, do look back. Look back and question everything and everyone. Sometimes, it is best to go with your gut. Look back, because looking back gives us perspective. A broker should have said, “You know what? You were right. Apple is profitable. Apple is doing amazing things. You are young. Recessions aren’t forever. You have youth on your side. You can ride this out. If anything, you might even think about purchasing another 100 shares here. Yes, it is not at the $9 or $12 you wanted. But it’s off it’s all time highs. This recession might just be your opportunity to get back in. And if things get worse, as they may … you might even consider buying another 100 shares.”
But no. He told me to sell. And I listened.
After hitting $700+ per share, Apple decided their stock had become too expensive for the average investor and announced a stock split. They would drop the price to $90 a share to make it more accessible. At $90 a share, 100 shares was a whopping $9,000. But … it was Apple. I already missed one massive rally. I wasn’t going to miss another.
