Apple’s stock is set to split for the fifth time in 40 years of availability. Here’s what you might have bought if you sold your shares every time Apple split its shares since its IPO in 1980.
If you bought Apple stock when it first went public on December 12, 1980, you got it before Apple wanted to. While the company was unmistakably on the verge of going public, Apple’s very first CEO Mike Scott said the company was forced into it early on – by Steve Wozniak.
“There are magic numbers in the salvation of a business,” he told Owen Linzmayer, author of Apple Confidential 2.0, “and one of them has 500 shareholders. have that many shareholders, you have to file all kinds of documents with the SEC. ”
Apple co-founder Steve Wozniak gave away so much of his own company stock to friends and family that the company was close to hitting that number. Scott decided to take the company public earlier than he would have liked, and did so that day in December 1980.
According to Linzmayer, the IPO made 40 millionaires at Apple. According to Walter Isaacson’s Steve Jobs biography, it made 300 people so rich.
Whichever number is correct, Woz did well. The number of shares he had left at the time became an estimated value of $ 116 million.
Apple IPO: December 1980
Apple was valued at $ 1.79 billion and initially the shares were sold that day for $ 22 each. Before business closed, however, they were all trading at $ 29 a share.
It sounds like a good offer and it was, but 1980 was a long time ago. For comparison, a gallon of gasoline sold at that time for $ 1.25, while a gallon of milk was $ 2.16. You can pick up a dozen eggs for $ 0.91 and write about it with a first class stamp that costs $ 0.15.
Apple in 1980 meant the Apple II
Alternatively, you could have bought Apple’s latest version, the Apple III, for a starting price of $ 4,340. You shouldn’t, you really should have held onto the Apple II Plus.
Apple’s first stock split in June 1987
If you had bought one stock instead and kept it, then 6 years and 6 months later you would have had two. Apple split its share on June 16, 1987.
Your $ 22 investment would now be worth a total of $ 83, or $ 41.50 per share. The milk hadn’t risen that much, coming in at around $ 2.20 a gallon. And gasoline had actually fallen: the average price per gallon had then fallen to $ 0.96.
It’s the beloved Mac SE / 30, but the original SE was the new version from 1987
Which might have helped you a bit if you had saved up for one of the major Apple releases of the year, the Macintosh II and Macintosh SE. The first was the very first color Mac, and it started at $ 3,898. The SE, for comparison, started at just $ 2,898.
Another Apple stock split 2: 1 in 2000
Apple again split the stock in a 2-for-1 offer 13 years later on June 21, 2000. So if you had bought that single stock originally, it had become two in 1987 and was now four.
Each of the four stocks you had was now worth $ 101.25. This means that for your initial investment of $ 22, in 2000, you had a value of $ 405.
This time around, you might have been tempted to cash in on that because Apple released one of its finest Macs that year, the Power Macintosh G4 Cube. It initially sold for $ 1,799, which now seems like a good offer compared to previous Macs, but at the time it was considered an expensive luxury PC.
The Power Mac G4 cube
At the time, gasoline had an average cost of $ 1.56 per gallon. Eggs were generally again at their 1987 price of $ 0.91.
And, again 2: 1, in 2005
Five years later, Apple made the 2-to-1 split for the third time. So an original share in 1987 was now eight.
Each of those eight shares was valued at $ 44.86, which is a little lower than at the time of the previous split. So if you decided that Apple was doomed and you should cash in quickly, your initial investment of $ 22 would now earn you $ 358.88.
If the stock value was lower than before, so were Mac prices. Specifically, it was the year that Apple launched the Mac mini, starting at $ 499.
The first Mac mini of 2005
So all you needed was the value of your share plus an additional $ 140.12 and you had a Mac. Or, you can just take the share price and you can fill your car with 153 gallons of gasoline at $ 2.34 a gallon.
The Big Apple split – 7 to 1 in 2014
A lot happened between 2005 and 2014, and most of it was due to the iPhone. Apple’s most successful product – indeed the most successful product in the world – had been launched.
This time, Apple shied away from its old habit of 2-for-1 stock splitting and went for a 7-for-1 version. After this split on June 9, 2014, each stock was valued at $ 93.70.
Since you stubbornly held onto that original single $ 22 share, you now own 56 shares. And that earned your investment $ 5,247.20.
Apple iPhone 6
Which means if you were feeling generous you could have sold the stock and bought yourself and seven friends a brand new 16GB iPhone 6.
August 31, 2020 – The next big Apple stock split
As of August 26, 2020, the price of a single share of Apple shares is $ 503.50. After the split on August 31, 2020, each single share is worth $ 125.88. However, this latter division really means that a single original 1980 share is now 224 shares. So your investment of $ 22 at the time earned you $ 28,197.12.
In July 2020, the average cost of a gallon of milk was $ 3.45. The average cost of a gallon of regular gasoline in the United States is currently $ 2,191 and fuel mileage is typically 24.9 miles per gallon.
So if you stuck with that one-time $ 22 Apple share in 1980, you could now buy 12,869.5 gallons of gasoline. If you had a big enough gas tank and sufficient survival technology, you could travel 1.3 times the average distance between Earth and the Moon.
And that $ 28,197 could get you a really nice Mac Pro, or five of the base model.