One is a drip version of AAPL investment. What would you have if you'd invested $1,200 monthly into AAPL shares since the start of the iPod era? It's not a whim, of course. There are quite a few investors who had the wherewithal to get into Apple when they saw their kids go bonkers for iPods, iTunes, et al.
So, with a $1,200 monthly investment in AAPL since October, 2004, and counting a $12.99 monthly commission would look like this: 726 shares at a total cost of $41,239 would have turned into $108,243. That's a return on investment of 162 percent. That first drip in October 2004 would've turned $1,200 into $7,618. Last July's pullback would've been a great buying opportunity. While Cramerica would've sold before the dip, Apple longs would've bought more shares at $52. That month's $1,200 would be worth $3,306 today.
Not bad at all. The beauty of an investment like Apple is that it's the prime hands-on stock. You touch the PowerBook, the MacBook, the iPod, buy songs from iTunes, and yes, own the iPhone. You know the quirks, the weak spots and the greatness that comes with owning an Apple product. You especially know the costs, from expensive-as-hell monitors to the $79 adaptor. Tough on the wallet, nice in your portfolio.
Of course, a great company doesn't always have a great stock, and vice-versa. Apple is that anomaly that strokes the imagination of consumers and investors alike. How much further will AAPL go? As long as Steve Jobs is in charge, there is no hurdle he can't leap over.
Even without any clear plan to leave an imprint in China, Apple seems poised to be money in the bank, at least for those smart enough to hold their shares.
Disclaimer: Sadly, Pupule Paul has only a small slice of Apple pie.
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