Dell, Apple, & Coke: Buy the product, or buy the stock?
Anil Dilawri posted an interesting analysis. His friend Brian bought an average Dell computer in the early 90s. He paid $3000. Had he bought 3K in Dell stock instead – he’d be sitting on a cool $2 million!
I wondered about my poor little Powerbook duo I got in 1992. It also cost nearly $3000. At that time though Apple shares were doing well – $70. Since then the stock split 2/1 twice. The current share price hovers at $122. So (if my calculations are right…) had I bought Apple stock instead of the PowerBook – I’d have a lukewarm $7000. (not counting dividends). Glad I went with the PowerBook.
As I worked with my new PowerBook, I also bought cold refreshing bottles of Coca-Cola. Had I bought $3000 worth of Coke stock in 1992 – it would be worth $15,000 today.
Moral of the story: Buy Dell stock, Use Apple computers, Drink Coke!
UPDATE: As Jobe points out – I screwed up the Mac share calculation. They should be worth over $20,ooo. (that’s exactly why I don’t do my own taxes!)