I have concluded that Forrest's stock had to be purchased in the Apple Company (NASDAQ: AAPL) before the December 12,1980 Initial Public Offering (IPO).
- Dec 12, 1980 Apple Co. IPO: 4.6 million at $22 per share ($0.39 split adj)
- July 6, 1994 Apple traded at $26.13 ($0.85 split adjusted)
12/12/1980 to 7/6/1994
On December 12,2000 shares of Apple were $15.38 ($1.02 split adjusted) which saw a return of 161% from the IPO investment. If you had purchased the shares at close on the day the shares went public @ $29 ($0.51 split adjusted) your total 20 year return would have been a mere 100%.
Steve Jobs returns as Interim CEO and shares Crashed
On August 16,1997 Steve Jobs was appointed interim CEO and Apple shares traded @ $21.94 ($0.73 split adjusted). Three months after Jobs returned, on December 23,1997 shares of Apple had fallen to $12.94 ($0.43 split adjusted), a decline of 41%.
Apple Stock Fell 80% in 9 months
Prior to Apple's 20th anniversary of being public it's all time high was set on March 23,2000 @ $150 ($5.01 split adjusted). On June 21,2000 shares split 2 for 1 and by December 12,2000 (20th anniversary), 9 months after reaching its all time high, shares were trading at $15.38. 80% lower in 9 months.
3/23/2000 to 12/12/2000
Forrest Gump disclosing he was long Apple Computer stock was the time to jump in.
Movie goers who had walked out the theatre on July 6, 1994 and purchased Apple stock have seen a 12,283% return through December 31,2015 year end close $105.26. A 25% annual return for 21 years!
Crowdfunding will be a game changer for mom and pop.Apple Computer's IPO was not Blue Sky in Massachusetts because it was too risky.