The $500 Fortune, Part 1

Here is a list of stocks.  For each stock, I have indicated what $500 invested in a given year would be worth today:

 

Apple: $500 invested in 1980 would be worth $216,289.21 today

Apple-Logo-black

Adobe: $500 invested in 1980 would be worth $436,719.38 today

adobe logo

Disney: $500 invested in 1962 would be worth $353,557.05 today

disney

Celgene: $500 invested in 1995 would be worth $235,493.90 today

Celgene-logo

Monster Energy Drinks: $500 invested in 1995 would be worth $1,213,824 today

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Green Mountain Coffee: $500 invested in 1995 would have been worth $236,334 at the time the company was taken private in 2016.  You would have received $236,334 back from that initial investment of $500.

green-mountain-coffee-logo

Walmart: $500 invested in 1972 would be worth $1,135,937 today

wal-mart-logo

Amazon: $500 invested in 1997 would be worth $416,238 today

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Starbucks: $500 invested in 1992 would be worth $92,753 today

starbucks logo

Nike: $500 invested in 1980 would be worth $551,830 today

nike

What is important to know here – and I talk about this in my e-book – is that PERFORMANCE and TIME are the two most important factors in these examples of growth – not the specific amount invested.  Let me give you an example:

In 1981, you could have invested $10,000 in IBM and had you held onto it, it would be worth $174,101 today.  Not bad, right?  HOWEVER………….

Had you invested only $500 in Home Depot that same year, it would be worth $4,470,385 today!!

In my next post, I will list some stocks that are poised to perform in a similar way over the next 20 years.  Stay tuned!!

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click here to be taken to its Amazon page.

(Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

 

 

Don’t Get Bit By Bitcoin!

The other day, someone asked me what I thought about investing in bitcoin or other cryptocurrencies.  The person who asked is someone that has never invested in a mutual fund or stock, and now they’re asking me about bitcoin!

STOP!!!

I am a big believer that some cryptocurrencies are here to stay.  However, at the present time, I will say this to you with certainty: Don’t invest in bitcoin unless you are willing to lose 100 percent of your money.

Bitcoin has captured the fancy of Joes and Janes all over the world.  It has had a meteoric move, its value going from around 10 cents to as high as $17,000.  However, in my view, it is more gambling than investing.

For one thing, with bitcoin, the easy money has already been made.  Those who got into it 2 or 3 years ago have made a fortune.

Also, we have no idea what the price of bitcoin is going to be in a year, 2 years, or 5 years.  It could be $100,000, $1 million, or 1 penny.  Part of bitcoin’s appeal is the fact that it is not controlled by any central bank; it is a transaction between 2 people, and you don’t even know who is on the other side of the transaction.  It is not protected or backed by any government, and its value is based merely on what people are willing to pay for it.

Listen – bitcoin is currently a “mania”.   And like all other manias in the past, it will crash.  People gravitate to get-rich-quick schemes all the time – this is no different.

Remember the dot-com boom?  In 1999, every Tom, Dick and Harriet invested in any company with a “dot-com” at the end of it: companies like Pets.com, Toys.com, and others that are long gone today.

In contrast, the value of a stock is based on the profits and growth of a real business.  It is therefore possible to make projections with some degree of confidence.

Instead of allowing yourself to get bit by bitcoin, set your sights toward real investing.  Learn how to get started in my e-book and at The Motley Fool.  Share your experiences, thoughts and questions in the comments!

Until next time…

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click here to be taken to its Amazon page.

(Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)