When iPad first came out, people at my work buzzed with excitement. People were shelling out $700+ for the 64GB models. I did not get it. Folks started showing up to meetings with their iPads instead of the good old yellow notepad to take notes.
For Christmas that year, my husband bought me an iPad. I wanted to return it, but that was not an option. He had our son’s name engraved on it as part of Apple’s free offer. Once I started using the iPad, I fell in love with it immediately. There is a wealth of information and tools that I could easily access. Its size and weight makes it convenient to take it anywhere.
Around the time iPad 2 was released, an article came out about how investing in Apple stock instead of buying a $4,000 Mac computer in 1999 would have increased the money to $330,000 in 2011. That made me realize that I may be missing out on a great stock! I decided to do an experiment. Instead of buying the iPad 2, I will invest the money on AAPL stock. Half of our emergency fund was in a savings account earning a measly interest. I took an amount that I felt comfortable to be without should my experiment fail. I bought in at $330 per share. I saw the stock climb up steadily as the weeks went by.
For Mother’s day, my sisters and I chipped in to buy her the iPad 2 as a present. Mom lives on her own and she was feeling a bit alone at times. I knew that the FaceTime feature would be great for her. We decided to splurge and buy the new release as well. Soon the rest of my sisters and their families did too. Since then we would FaceTime Mom and other family members during dinner time. It’s like having dinner with them. We also call at times for my son to say his goodnights. We’re a close knit family so this is a really great tool for us.
The cost of the iPad 2 was $540 with tax. At $330 per share, it would have bought me 1.64 shares at the time. Today, the APPL stock is at $585 per share. The money spent on iPad 2 would be worth $960 today. That’s a 77% return so far! The rest of our emergency money is still earning less than 1% but it does not have any risks.
I don’t regret buying the iPad 2 instead of buying more stocks despite the gain. The ability to FaceTime family members regularly and on dinner time is priceless. I am fortunate to have invested some of our money in the stock itself as well. I don’t plan to buy the iPad 3 but I hope you do. I love iPad 3. I love that Apple keeps improving and innovating its line of products. I plan to buy more AAPL stocks if the price dips. I might buy a MacBook Pro later this year. My old Dell laptop is crap and will likely die soon. I want to learn how to program on iOS and create apps. I also want to create iBooks for my son. It might lead to another money making stream.
Thanks to Mr. Money Mustache for inspiring this post. Check out his post on Why I am SO Not Buying an iPad 3 for a perspective on gadget accumulation.