Would you rather have $1,750 or a one Billion?

Yes $1,750 or a $1,000,000,000.00: Dumb question?

Well,  here is an even Dumber investment decision, one of the founders of Apple sold 100 % of  his 10 percent stake in Apple Computer for $800 and put it in gold! ” “Security for the future,” Ron Wayne -Apple co-founder: Source Bloomberg By Mark Milian

http://finance.yahoo.com/news/apple-co-founder-traded-shares-004201732.html

The $800 he invested in 1980 in gold would now be worth only about $1,750.  If he had kept it in Apple stock, it would be worth over One Billion US$! That is Billion with a B.

Money lesson number #123: NEVER SELL everything takes a chance and keep at least 10-20 percents*

If he had kept just kept $80 (10%)  invested in  Apple’s  stock, his $80 would be it would be worth over $100,000,000. Yes, a hundred million us dollar.

And he would have just from the dividends paid each year by Apple to him, yearly income of  $1,668,000.00.

Yes, that is $139,000 per month in income, and he could give away his current  monthly social security check of less than $1,500 that he is now getting to a charity.

Yes, we all make mistake but you have to admit that this is one  colossal of mistakes.
Unintelligent investor’s always run for the exits when things look bleak.

One of the lessons I learned over the past ten years of doing in-depth research in the stock markets is that many times a few stock may go bad on you. And yes it is very normal that you want to cut your loss and run but, take a chance and hold on to about 20%. Do the smart thing as I wrote in my two investment books by taking out your original investment in, stay in the game.

Money Life Lessons #123: NEVER SELL OFF 100% of YOUR  HOLDINGS! Yes, keep at least 10-20 percent invested because you NEVER KNOW *

*It should be noted; some companies  do not give direct  shares to employees, but rather in the form of stock options.
These options do have an expiration date, and if you do not exercise them on or before the expiration date, you will lose them.
However, one can always exercise these shares, and turn would and use some of the proceeds  (10-20 percent ) to buy back shares in the companies and hold on for the very long team.

 

Sherwin Brown

About Sherwin Brown

Sherwin has been an entrepreneur since he was twelve years old. He currently teaches, writes, and speaks to people about how to improve and safeguard all aspects of their financial portfolios.

Comments

comments