ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for default Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.

Have you missed the boat when it comes to investing?

Share On Facebook
share on Linkedin
Print

Any kind of investment at all is a gamble. While it is true that keeping your cash stashed under your mattress will bring you no extra returns it will ensure you don’t lose it on the wrong investment.

©

Does this mean then that it is better to never try out any sort of investment? Of course not, however, when you look at some of the big IPOs or Initial Public Offerings that you have missed then it is easy to think that perhaps the boat has already sailed.

There have been some truly fantastic flotations in recent years and if you had taken advantage of these then you could now be a millionaire and hopefully, there will be more to come.

Here is a look at some of the more spectacular IPOs of the recent past, what is in the news now, and what you might want to consider for the future.

 

How the value of money changes over a period of time

This is a theory that all investors should understand. When considering investing a certain amount of money you need to calculate its present value. The time value of money simply means that the money you have in your hand now has more value than it will in the future.

This is because money depreciates over time and has less worth. However, you can invest this cash and receive a return on your investment or ROI. Of course, there are no guarantees you will receive your money back in the future or any return at all. Present Value Index is a measure to help make decisions when investing.

 

The big IPOs that already sailed and how much they could have made you

Although there is no enjoyment in seeing what you have already missed out on you will get a good understanding of present value by seeing what a small investment in some of these businesses would have returned to you today.

 

A brief history of Apple

When you take a look at Apple’s company information you will see that they generate around 40% of all revenue from the Americas. The other 60% comes from everywhere else. Apple was famously started by two college dropouts; Steve Wozniak and Steve Jobs. The company was named Apple as the pair couldn’t think of anything better and you could imagine that from these humble beginnings there would be little thought to how big they would become.

Apple introduced the first color graphics on any computer ever and it was innovations such as this that perhaps showed where the company would end up. When you consider what the best products are from the 21st century so far it is almost certain you would include something from Apple.

The iPhone, iPod, the iMac, and the MacBook Pro were all revelations on their release and they have sold millions of units. When you look at the IPO and then consider what happened to the stocks afterward it would be easy to kick yourself for not investing in them.

 

Taking a bite out of the Apple

PC users over the years have scoffed at Apple fans and many Android users continue to do the same. Consider how they might feel differently if they had purchased a handful of shares at the IPO.

If you had picked up just 10 shares at the flotation price of $22 a share you would have spent $220. When looking at that present value of $220 you would need around $700 today to have the same purchasing power.

Are you intrigued to know how much your $220 Apple stocks would be worth today? When you take into account the four stock splits that Apple did your shares would have multiplied from 10 to 560. These 560 shares would have a value today of around $69,000. If you had sold at Apple’s height then you could have walked away with well over $100,000. Apple hit a new record market cap of $2 trillion in 2020. This means they doubled their valuation in just two years.

 

Did the boat already sail on Bitcoin?

There is a limited number of this currency available and the number of coins left to mine is also finite. Its critics dismiss it as a bubble and claim it is susceptible to fraud. However, it remains extremely popular with a certain type of investor.

Only recently it was announced that Tesla invested $1.5 billion in bitcoin which in turn caused a huge surge in its valuation. Bitcoin rose to $60,000 at one point before sliding down by a few thousand dollars. This is incredible when you consider the initial valuation of bitcoin was 10 cents.

For something that has been dismissed as a fad, a fraud, a non-currency, and not real it has made some people very wealthy.

 

How much could you have made on bitcoin if you invested at the start?

This could be a heartbreaking example of having missed the boat. For an initial investment of just $100 just over 10 years ago you would have got 1000 bitcoins. After Elon Musk’s investment, your coins would have been worth $60 million. You might want to take a seat now…

 

Does this mean you have truly missed the boat on bitcoin?

It is hard to say because bitcoin fluctuates so much. There is potential for bitcoin to hit $100,000 or even higher, especially as there are a limited number available and also if high profile investors make similar purchases as Tesla.

There is one more concern when it comes to bitcoin. The price can be easily manipulated. Because there are a limited number of coins available it means powerful investors can buy a huge percentage of them, driving the price up only to sell them and watch them fall before re-investing. Of course, this happens with all markets but bitcoin is extremely susceptible to this.

The recent Reddit group and GameStop stocks have shown how markets can be manipulated and prices pushed up so it will be interesting to see what happens with bitcoin now.

 

What is the next big thing?

While it may be too late to make real returns on McDonald’s shares there are upcoming opportunities. Covid has changed the way people are going about their daily lives and also the way they are making purchases.

Ecommerce now has a huge share of the retail market and this has extended into entertainment, transport, and food. People order and pay for cabs online, watch Netflix, and they also order takeaways.

By the time you have read this Deliveroo may have just floated. Their shares are valued at between £3.90 and £4.60 meaning the company is valued at just over £8 billion. It is businesses such as this that have seen growth come from the pandemic that could be interesting investments.

 

Summary

The present value of $100 or $500 today might seem small fry if invested in the right way. Of course, you could try your luck with Bitcoin and see if there are any more major investments that will push the price up or look for a Covid proofed IPO. Whatever you choose, although some boats have sailed there are plenty more waiting in the docks.

Oh, and just in case you were interested, a 100 share investment in McDonald’s at the IPO would have made you a millionaire a dozen times over.

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com