If You Had Invested $1,000 in Apple Shares Two Decades Ago, This is Your Current Value
If you're splashing out any cash on some stocks right now, you might want to ponder on what they could shape up to be in 20 years. Sounds too far-fetched, doesn't it? But remember, a long-term investment strategy means you're betting that the company you've invested in has the power to grow substantially over many years and even decades. If you're unsure about a stock's growth potential in the future, you might want to reconsider your investment.
Let's take a leap back in time and muse over how one stock has fared over the past 20 years. Apple (AAPL -1.32%) happens to be the most valuable company globally. If you'd tossed in a grand on Apple stock 20 years ago, you'd be sitting on a pretty penny today.
Buffett's top pick?
Oracle of Omaha, Warren Buffett, recently asserted that Apple boasts a stronger business than his age-old favorites, Coca-Cola and American Express. Although he's been shedding some Apple stock recently, it still occupies a sizeable 23% of the entire Berkshire Hathaway equity portfolio.
Buffett first bought into Apple in 2016. If you'd spotted Apple as a golden investment before Buffett and held your ground through the highs and lows, your investment would be worth a significant amount more today, thanks to compounding. If you'd stunningly invested a grand in Apple stock 20 years ago, you'd be enjoying over a quarter million dollars today. That's an annualized return of a staggering 31.2%! Including dividends reinvested, you'd be in possession of nearly a quarter million and a half dollars.
For the youngins out there, you should be dreaming of decades into the future when you're crafting your portfolio and visualizing what your retirement savings will look like in 40 or 50 years. Even 20 years of compounding can work wonders, creating an immense fortune if you select top-notch stocks and let them work their magic.
Investing in stocks like Apple can significantly increase your wealth over the long term. For instance, if you had invested a thousand dollars in Apple stock 20 years ago, it would be worth over a quarter million today, showcasing the power of compounding and long-term finance strategies. This demonstrates the importance of considering a stock's growth potential when investing, as highlighted in the initial text.
