Apple Inc. (NASDAQ:AAPL) co-founder, Ron Wayne didn’t just make the worst decision of his life, but the problem is that he doesn’t realize what he has quite missed out on, even though the numbers say it all. In a segment on Fox Business, Charles Payne, explained how some investors lock in on one particular type of investment and cannot see beyond it. Wayne is one example of such an investor.
“[…] Apple Inc. (NASDAQ:AAPL) co-founder Ron Wayne , he sold his 10% stake for $800 and he bought gold with the whole thing and really to be honest with you he proudly stands to this day to this decision. That underscores a serious problem, right. People that buy only gold or only bomb shelters, or only canned food, you have missed out on so much lost money, but also lost time, and that time you cannot get back,” said Payne.
Payne used a graph of Apple Inc. (NASDAQ:AAPL)’s stock and Gold price, since 1980 to prove his point. Gold which has been up a nearly 100% since then seemed a rather straight horizontal line as compared to the trajectory of the Apple stock. This is of course because the stock is up nearly 20,000% since then.
Let us take a look at what that 10% stake that Wayne had in Apple Inc. (NASDAQ:AAPL) would actually be worth today, or in other words how much money he would has lost, without actually losing it of course. As of the closing bell the market cap of Apple is $642.63 billion. 10% of that would be about $64 billion. Subtract $800 from that figure and you have Mr. Waynes’ loss right there.
Wayne can correctly argue that at that time few could have known that Apple Inc. (NASDAQ:AAPL) is going to be the success story that it is today, and even $800 seemed like a good enough deal, but if it’s between betting on losing on $800, and gaining $64 billion, I know which of the table I would prefer to be on.
Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.