Ten years ago we were in a real estate boom. Declining interest rates and a volatile stock market made owning a bigger, better home the investment du jour. But, what if instead of your house, you purchased Apple stock in 2002. Can you fathom that you’d be worth $10 million today? Noted stock analyst Jon Najarian looked back at various common assets purchased the past 10 years (e.g., a house), and priced them in Apple terms.
The typical American home cost $228,000 in 2002 (according to U.S. census data). With that money, you could have bought 18,704 shares of Apple at their price a decade ago of $12.19 a share. Today, that home is worth nearly $280,000, but that Apple purchase is worth $10 million.
Editor’s note: Today Apple announced it has a $100-billion cash stockpile and plans to issue a quarterly dividend of $2.65 per share.
Other examples Najarian used in his Apple exercise were on energy costs and tuition. Filling your tank for a year in 2002 cost $840 on average, (according to the U.S. Energy Information Administration). “But if you took the bus” as Najarian put it, and purchased 68 shares of Apple ($840/$12.19) instead, you would now own $36,244 worth of the iPhone/iPad maker todaya nice $35,000 profit and enough to buy new walking shoes for life.