Google and Apple

Both Google and Apple stock are currently trading at their all-time highs. What’s even more impressive is they are both up 19% in the last 30 days. Not a bad gain for a month. Both stocks are well over 100% gain for the last year.

What do these two companies have in common? They both are innovators. Just when you think there is nothing else cool they could do, they do something amazing. Then all the competitors scramble to play catch up.

I own a decent amount of both companies, and I’m not going to be selling those shares anytime soon. In fact, I might buy more (even at their all time high). Although you could just not listen to me, and instead listen to the “experts” who were running to sell Apple 4 years ago

“Don’t buy Apple’s stock. And if you own it, sell it.”

If you would have invested $10,000 on the day he said that, it would be worth $86,675 today (roughly 4 years later), a 766% gain. I don’t know of many other stocks that have averaged an 85% compounded gain year after year for the last 4 years… do you?

It will be interesting to see if Google follows the same trend for 4 years after their IPO… After 15 months, they are averaging a 315% gain per year. 🙂 If they could sustain that for a total of 4 years, their stock price would be $25,212 per share (of course there would be some splits in there) 4 years after their 2004 IPO and not only make them the first trillion dollar company, they would be a 7.4 trillion dollar company. If any company could pull that off, it would be Google (although don’t bet it will be that quick), they certainly are going to be the first trillion dollar company at some point.

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