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A $10,000 investment's upside over 10 years very much depends on whether you bet Apple or Microsoft. http://on.wsj.com/S9JWal
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161 comments
 
Wish i knew that 10 years before
 
who is the next apple so I can put 10k in now.
 
all this is based on GOOD QUALITY PRODUCTS...........REALLY IMPRESSIVE..............
 
I'm guessing those are not constant dollars. 
 
This is the stupidest article, everyone knows this now  and your comparing Apple at it's best to Microsoft well after it's peek. What is the point here?
 
When it comes to investing hindsight is always 20/20.  However, charts like this are what Larry Swedroe calls investment porn.  Show a graph from '93 to '03 and Apple would have lost half of your money and Microsoft would have appreciated over 800%.

What will the next 10 years look like?  $10,000 says nothing like the chart in this post.
 
Is Apple becoming the next Microsoft?
 
microsoft will soon get the lead.
 
It's very interesting.
If I bet Apple, It would become a billionaire.
 
very funnyn hahahahahaha.
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+Robert McTigue He's just a youngin'. You and I have been around long enough to know that tomorrow could be 1983 all over again. That's why the Lord gives us gray, or in my case, white hair. LOL
 
+Arjaya Mahajana When his history only goes as far back as Clinton he has much less to go on than someone who has been through many more. History seems to always be written by the winner and the young seem to forget it and make the same mistakes repeatedly.
 
did you account for dividends reinvested in MSFT? im sure that you would give a more accurate depiction of ROI and a higher ROI period for MSFT. although im sure AAPL still would have yielded a higher return.
 
I have been very happy with the Apple stock I bought back in 2005 :)
 
12 years ago an investment manager friend asked if he should put his clients in Apple.  I told him absolutely.  6 months ago I e-mailed him suggesting that it was time to start getting them out... I expect them to now become a cyclic similar to IBM and several other large tech companies.
 
I have a feeling that those lines will cross shortly.
 
Either way made money. I think people are looking too much into the recent slump like they're dead now. Like.. uhh.. They're a tech company. They HAVE to slump. They HAVE to fail to learn and survive. Of course, looking at sales they "blame" for the slump is still selling like mad soo.... I don't see the see the fail. 
 
Why not still apple ? look at macs vs PC look at everyone who does t have an apple device- mainly Asian countries. so I can see there revenues continuing to grow. They just opened there first store in Brazil. infant South America. long way to go yet. but another option would be 3D printing. 
 
+Alan Basinger the next apple will be Samsung, they have only been on the rise and with their innovation on screens and technology they should be a very good investment for the next 10 years or so.
 
MS is developing technologies (innovating) instead of just polishing existing technologies....  I'm not a fan of Windows but Microsoft has started doing some pretty impressive things with 3D interfaces. 
 
The next ten years will be very different.
 
This is the most useless graph ever, Apple is a hardware company, MS is a software company........someone is clearly paid by Apple to post crap like this
 
It also depends on whether you sell apple now, or wait til it completes it's crash.
 
Just proves MS has saturated their market, and have to reinvent themselves to find new growth. That's their problem, however. They have been trying to break into hardware but their business model painted them into a corner - they can't dive too deeply into hardware without cannibalizing their closest hardware partners' business. And they are clearly having a hard time reinventing themselves.
 
Why did I comment on a public post..........meh mute
 
It's amazing....... Apple products aren't even that good, much is left to be desired in their software integration and features.
It almost seems it's the branding that has done so well to attract young people because it can't be their products in my opinion.
 
apple would survive no more than a few months if google decided to remove the word 'apple' from the first page search results... the shares are overpriced and already on the way down. it has already started.
 
One word. Itunes. It's not from the sale of computers/smartphones
 
+Neil Mcginnis Absolutely. Apple is a triumph of clever advertising. I realised this as soon as they started "boasting" about being able to copy and paste on their phones. The previous 3 phones I had owned at the time over the course of 4 years had always been able to do this, and the scales fell from my eyes (not that there were many there in the first place, to be fair).
 
If anybody care to click on the link, the article, which is properly titled "Why Microsoft Beats Apple", is saying that M$ is a better choice than Apple right now. 
 
Well this just proves you shouldn't invest in individual stocks.  Buy a total stock market index fund and you'll capture the market return, no more and no less.
 
apple cheats they took 4 generations to add a camera to there ipod
 
I worked for Nokia's ad agency around the time the iPhone was first announced. Nokia's top executives literally scoffed at it. They mocked it. They were absolutely convinced it would fail. Apple's dominance of profits in the mobile handset market is all due to this disruptive product that had NOTHING to do with advertising. No amount of ads could save Nokia (and the other leaders from the pre-iPhone days) from their arrogance and complacency. 
 
note how it is starting to drop
all those lawsuits not paying off must be doing them soooo cool
aint it cool to sue people must be a company full a lawyers 
Toby K
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+Wesley Williams You're slightly incorrect. Apple did not pay a dividend for most of that time (unless the goal of this chart was to stop exactly before August 9, 2012), but thanks to splits (both stocks split 2:1 once in this time period), the amount of money you'd have made from the AAPL dividends is actually $13864.8, and from the MSFT dividends is $5489.12, even though AAPL paid dividends only twice in the past 10 years and MSFT did so 36 times in the same period.

Also, +The Wall Street Journal's charts do not show the proper data. If you invested $10k 10 years ago, both stocks split since then, and the AAPL shares would actually be worth $1.47 million dollars, according to my math. (Buying 1308 shares at $7.64 a share this day in 2002, having them turn into 2616 shares at $562~ today would be $1,470,192).  The MSFT shares (all 728 of them at $26.64) would be worth $19,393.92.
 
what does it matter when government spending will have the major corporations trying to get them out of bankruptcy within 10 years. the whole economic system is flawed due to central banks in the first place
 
This sort of gragh only tells me that apple are more greedy than I thought..58% profit on iPhone nah thanks keep it.
 
this is BS. people tend to forget that 10yrs ago no body wanted to buy APPL stock. Better comparison should be APPLE 10 yrs ago, vs MSFT 20yrs ago.
 
seems kinda fake. I should recheck the data... so sad I'm too lazy.
 
It is time to sell Apple too. It will never be the juggernaut again. Cycle of life.
 
Tech companies are all over the place. Apple will be flat in ten years and someone else will be peaking.
 
Invest 10k in the same companies and see what happens in the next 10 years with it. ;-) 
 
Hope it holds here, heads back up for the right shoulder and then....... :D
 
Note the severe drop about now. That's probably the iPad mini... also note my profile photo... IT'S GOING TO HAPPEN, ALL YOU iDiots!
 
So what will happen as Android kills Apple phones and tablets?
 
Apple has a very non-tech friendly tied ecosystem, I don't see it ever being "killed" by android, even if it loses market share it will still be vastly relevant.  The masses have attached huge values to the brand.
 
It's a DEAD WRONG example, if you compare Apple to Microsoft stock over lifetime - investments in Microsoft returned 26338% and Apple 15545%. Using 10 years period makes sense when comparing stocks to bonds, not stock vs stocks
 
That's not fresh by playing with people. If you can suggest current investment then you can speak about great examples otherwise don't push loosens mentality to others
 
This is in no way accurate. Microsoft has paid dividends on their shares for years while Apple has refused.
 
i love apple products but i bet the stock will be like Microsoft's stock going forward. the growth is over
 
It seems to me that Apple,  in order to keep up the trend, has to come up with a new product - sogar a best seller - every 4 - 8 month. Believers will buy or hold, and those losing faith will sell. That niche is ultra competitive, and I admire those who can lead the race.
 
"OK, ten more years, double or nothing."
 
the best investment is to take all of your money out of the bank and store it under your bed. the u.s. economy is headed for disaster within 10 years
 
Because Apple overprices all of their products and uses Chinese slave labor
 
And if you put $10,000 in Microsoft in 1989 and sold in 1999 you would have had $1,565,896.00.  Just have to pick the correct ten years.  Over that same time period (depending on the day) you could have lost money on Apple.
 
Those apple smokin' hippies have to make themselves feel good somehow! Nothing like comparing Apples to Oranges to get the results you want!
 
always knew it....just use the products from both companies....easy to see what was happening...one sucks, one doesn't
 
There is something wrong with this graphic...just some basic math and research shows the following:

MSFT IPO = $28 = 357 Shares.  Stock split 9X, Total shares today = 3213 with a value of $85,755 (today's price).  Not the millions as depicted for Apple, but not $12k either.

APPL IPO $6 = 1666 Shares.  Stock split 3X, Total shares today = 4998 with a value of $2,818,872 (today's price).  Still WAY more than MSFT, but it's not $667 million.

I'm sure WSJ did their homework, but some basic research and math comes with wildly different numbers.
 
+Robert McTigue, +Trevor Sutcliffe - How does the stock market correlate to GDP? If Obama has been so great for stocks why does he have the lowest GDP of the last five presidents at 3.1%? The next lowest GDP is Bush 41 at 8.9%. On October 18, 2012, on MSNBC's Morning Joe, Steven Rattner provided numbers and graphs of GDP by the previous five presidents. So does the president take credit for the economy or not? At the top are Clinton and Carter with 13.9% and 13.5% GDP respectively. From what I hear from older people, the Carter days were dark days. Carter's GDP is contrary to that sentiment and yet Carter did not win reelection. I can't find the numbers but Kennedy also had a blustering GDP and yet he espoused lowering taxes.

My take on all of this is that Presidents who influence, who work together and compromise with Congress are successful. The ability to influence is called leadership and the resultant low GDP somehow reflects the Presidents ability to lead.
 
+Carl Fiorica your math is wrong. Stock splits in half typically. So 9 stock splits = 2^9 = 512x, not 9x. Likewise 3 splits = 2^3 = 8x, not 3x.
 
Robert Hritz, i agree. I used to have an old mac, and that was not a good experience. Once i got rid of it, iv been hatin on apple ever since. The Macintosh makes me angry, although the ipads and iphones are so popular, that your a noob without a touch screen iphone. Kinda cray-cray, but ya know, stuff changes.
 
+Brian Bartlow Ah.  You are absolutely right...forgot about that.  So that would take your MSFT stock to 182,784 shares and $4,752,384

Your Apple shares would be 13,328 = $7,516,992

Not accounting for dividend re-investments and all that stuff.
 
What? You guys are MAD that OBAMA won, is that it!!!
 
Only a Rupert Murdoch company could call themselves the "Wall Street Journal" and have absolutely no idea that these companies have split their stocks multiple times since the beginning of that chart.
 
Microsoft has maintained a steady flat line.  Apple has been bull for to long now.  With Android taking market share everyday, Very little working on MAC PCs besides design software and Ipods being replaced by cell phones we will see Apples stock drop significantly.  they are WAY over valued just like facebook, its just taken people longer to realize that Apple doesn't really actually do anything at all.
 
I am predicting that Apple's success over the past ten years will not be sustainable.  Their product may be innovative during this chart's time frame, but not going forth.  Try leaving your 10K in their for the next ten years, I am betting that you won't be happy.  This market needs more than innovation; it needs sustainability and a die hard attitude.  Microsoft has that, as does Android.  I just don't feel that from Apple.  I feel Apple is here for the party, but absent for the drought.
 
Try to shift the timeline and align the peaks of the AAPL and MSFT stock.
 
was there not a Microsoft stock split and many dividends that you skipped?
while it does not make Microsoft much better then what you have shown it does make it about double what you have
 
^^Greg is right.  There was a split when Microsoft was doing well.  
 
who did it anyhow by then ? easy to say.
but you are right, Steve Ballmer is the worse manager of the year. don't understand why they don't fire him and kick him out of the Cy. 
 
Whatever you do don't do the math of $1000 invested in both companies in 1986.

There we have the problem with investors today, than the average investors long-term goals are measured in days not years.
 
Forest Gump must be worth a lot if he has hung on to those shares.
 
Don't you just love "if-you-would-have-invested-in-this-stock-10-years-ago" articles that give equity investors false hope while taking advantage of hindsight?
 
Microsoft forgot to innovate, but is coming around!... 
 
Yeah but Apple is a fashion designer that will crash.
 
I would have been happy with either investment, they are both positive.
 
Last time I saw a stock chart like that was when Madoff had a portfolio... Innovation my ass.
 
when you dominate / monopolize almost  99% of any market...growth is no longer and option...the only place left to go is down...especially when you  have no other viable plans or  ideas...!!!
Ryan Ng
 
Microsoft hasn't appeared to change much actually.
 
It looks remarkably like a head and shoulders pattern emerging there. It is actually a bit scary, because that is showing that it has broken the long term trend and the next support is considerably lower.  The sentiment may have changed for Apple. 
 
MY fingers are greasy I cant use my EYE POD 
It is a shame that our government will allow people to eat these bullshit Hostess products cakes any longer. So many resources used to contemplate whether they stay in business or not, who cares about a few thousand jobs.  If half the employees knew the constituent components in HOSTESS CRAP they would bail, and if not they are ignorant and have lost the spark to live and find an alternative way to over inflate their fattening families elastic waistband. I am dead serious here, the stuff in these products IS FUCKING TRASH PEOPLE, real actual chemically derived or altered trash. Here is a simple concept:

A combustion engine requires one of many alternative forms of fuel. Try to inject all the creamy HOSTESS filling into your cars gas tank-fill it up, imagine its your body, fill it like you would your kids bodies. It contains energy all right, try to start it. You gum up the works the only difference is you cant just clean out or remove your bodies internal fuel lines and do it right. Your body rather, leaves the worst components to thicken your fuel lines and the rest goes into storage, in your fat ass, tits, man bulge, paunch, on the ladies that nasty shit I call secondary or under ass. Dont get me wrong I like a healthy thick ass, not a nasty cream filled greasy ass. BTW All you asshole corporations that refuse to divulge whether your food has GMO components are fucking all of your kids futures, and many of the big wigs running the show were simply told this is a bad idea and it will cost $$$. Instead lets continue feeding hormone and pesticide and crap to our nations future fatties. I am embarrassed for our GOD BLESSED country a country of lies. Disgusting, makes me mad, anybody need a loud mouthed fuck of an advocate I will help. Pardon my ENGLISH, my FRENCH sucks too!
 
nothing to compare.. M$ is in another type of market. one day the consistency will speak. I don't even like M$, but @pple isn't doing so good at the moment, their stocks will dive.. and over the time, they will go down the wire.. sorry.
 
Compare M$ from '91 to the dotcom bubble burst. It's all timing :) 
 
I bet on Nortel Networks.
 
Oh the wall street journal is owned by news international I will un circle them now as I have the BBC.
 
but who's trying to form a monopoly...
 
Junk statistics.  Quit trying to work the market please.  
 
coke or pepsi? the tired capitalist market scheme.
 
Once you go Mac, you never go back!
 
In 3 years all is down hill and will end up roughly at 10000.
 
Water under the bridge. What do i do with 10k now?
 
Maybe it's more relevant to look at years with Steve Jobs vs. years without Steve Jobs.
 
Yes, Microsoft went into extreme hubris and started suing everyone, lost massively, then eventually started to recover. now Apple is following the same trend, and hopefully will wake up while there is still time. Microsoft used to own 90% market share, and now  my web stats show maybe they have 60-70%. Apple has always stayed at 11-17%.
 
Consider a real good mutual fund.  Research, invest, then wait.  Time is required for growth.
 
History shows that when a company quits working and tries to make all its money by killing competition in law suits instead, then that company begins to die or at least be relegated to a position of irrelevance. Android took 51% market share two years ago and added another 72% increase in its sales this last year. Apple has still been selling strong with iPhone, iPod, IPad. How has the Windows 7 phone done? 

Protectionism through suing everyone in sight to prevent competition results in corporate failure. The correct response is to truly innovate better than others and stay ahead of the competition. Microsoft forgot that and almost died. Apple is there now. Time will tell.
 
Sure....lets not forget apple from 1986 to 1995...then from $118 to $10 and we apple freaks mailing $$ checks to apple corporation to bail help them out ...cause they were going under.
 
I seen apple many times fuck up royally and guess what Microsoft had apple as their bitch from 1987 to 2008 now its going to be Android OS and this time apple is going to have a threesome MS and Apple to be both bitches to Android (google).
 
Apple knows how to make money and they r really smart to make people buy something new every 6 months, so I was wondering when they will release the iPad mini retina display and for how much? :) 
 
The hell with wall street . Wonder when crash going happen again.
 
Money hunger game apples agenda. Keep throwing out new stuff every few months and keep the fans comming back. Rich people to go after! Just a thought Ha! Ha! Ha!
 
if apple is so smart. they should make a double touch screen phone & ipads. IPODS. but more on the phone. first. double touch screen iphone would sell. you can actually do 2 diffrent things at the sametime. just flip it. 
 
I like my iPhone 3G, but I really don't think I will get the latest one.
What really irritates me is Apple releases a new OS EVERY YEAR!
Windows 8 vs Mac OS Mountain Lion. Granted they have Great products (iPod, iPhone) but I spent LESS on my Alienware Laptop with more features and three times the power. Noted, I have three Mac's and Two Servers. I deal with IT, but it's a lot easier to repair a PC for parts or Hardware. 
 
microsoft is better. they smarter. i would love to work for microsoft. even if im the one who picks the garbage. i need a job. orlando area! i need to help my family. christmas is coming. :(
 
although I cannot say one is any "better" than the other, I would say that right now, Microsoft "plays well with others" more than Apple. if only MS could create a business strategy and model in which they were able to openly share and give as Google does - they might be able to stay away from the legal trouble that appears to constantly follow them.
 
Curious to know that "What-if" investments has never yielded anyone any wealth.
 
MS's value increased back in the 80's and 90's. For it to still be as consistent as it is after all this time, while providing dividends is impressive. Furthermore, just because they both are in the technology business doesn't mean they're the same. They're very different companies. Apple is not making their money off of their OS and enterprise software is something they will never get right. Both of which are MS's main products. They are two very different companies. You might as well compare MS with McDonald's. 
All that being said, those who invested $10k on a company who made this monstrosity: http://upload.wikimedia.org/wikipedia/commons/thumb/e/e9/Clamshell_iBook_G3.jpg/200px-Clamshell_iBook_G3.jpg

..took a huge risk, and I congratulate them on their fortune and success! Apple has certainly come a long way. 
 
although we cannot say one is any "better" than the other, we will say that we find that Microsoft "plays well with others" more than Apple. if only MS could create a business strategy and model in which they were able to openly share and give as Google shows us how to do. that would help get them out of the legal troubles they often experience.
 
although we cannot say one is any "better" than the other, we will say that we find that Microsoft "plays well with others" more than Apple. if only MS could create a business strategy and model in which they were able to openly share and give as Google shows us how to do. that would help get them out of the legal troubles they often experience.
 
This chart is inaccurate and misleading, dividends (which microsoft gives and apple hasn't until just 3 months ago) aren't being factored in, as well as stock splits which changes Microsoft's numbers to close to 26k. Yes, it's shy of Apple's numbers, but you're also looking at a steady established company against a company that was pretty much being written off as worthless in the early 2000's until they released the iPhone in 2004. If Apple hadn't released the iPhone in 2004, they never would have seen these kinds of numbers, and you'll see that with any company that creates a game changing revolution. Compare this to $10k invested in late 1987 and in 1997 your apple stock would have been worth about 4k compared to microsoft stock worth about $20 million due to going through 6 different stock splits. Hold the stock through 1999 and apple stock is now worth about $19k, whereas the same microsoft stock has shot to being worth over $500 million. This chart basically is showing a "Man if you could have called that Apple was going to hit it big..." well yea, but that's what the entire stock market is a story of. Apple has increased in value because they were worth almost nothing and then hit it big. Microsoft can't get a whole lot bigger, so their value is rather steady. I hope no one dumps all their money into apple stock as a result of this misleading chart, in my opinion it borders on unethical to post this.
 
Chart is only relevant to a point, so microsofts value has been steady over the last decade and apple recovered from near bankruptcy with an infusion of cash from Microsoft. Now that they are missing Jobs will they be headed back in the opposite direction? If you look at what apple has released recently and consider their shake ups in management I would say if you invested in apple ten years ago great, but get your money out now if you want to maintain that value. 
Jj Les
 
I would have guess Microsoft had increase more then that! 
 
Excellent products, innovation, market share, sale, and a dynamic management team characterized a dynamic bullish stock in a healthy market environment.
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