Buying Apple shares rather than iPhones, the secret to becoming a millionaire?

A publication published on the social network X on September 12 during Apple's Keynote is still being talked about a few days later.

Here is the thought that poster Sumit Behal had. According to him, a person who invested in Apple sharesthe day the first iPhone was announced in 2007could have earned $367 million. To achieve such a profit, Sumit relies onan initial investment of $17,000. Which is equivalent according to the man to the total price of each new iPhone from 2G to 15.

If you had bought Apple shares worth of every new iPhone model on Apple event day from 2007 , you would have converted 17,000 dollars to 367 million dollars

Tim Cook will never tell you about this#AppleEvent pic.twitter.com/TwuX2vOJx0

— Sumit Behal (@sumitkbehal)September 12, 2023

There is a boss error

We do not know the calculation made by the author of post However, he obviously did not take into account certain essential parameters to carry out his calculation. In principle we understand the reasoning, butthe result is false. Especially since the thinking behind the post is a bit unrealistic. Who in 2007 could have guessed what Apple would become? The answer is simple: no one. Even Warren Buffett did not foresee this and did notstarted investing in Apple only in 2016.

Following the impact of the post, TechCrunch wanted to react and correct the situation regarding the calculation and thinking that Sumit Behal had.

2 possibilities according to TechCrunch

According to our colleagues, using the basic reasoning of the post, if a person had invested in Apple shares in 2007 on the day of the Keynote and for an amount of $20,000, they would haveat best $1.5 million. This is in case she had invested at the best time, when rumors of the first iPhone started to come out, and not on the day of the Keynote.

Another calculation and a more fair and realistic way of reasoning were also proposed. Haje Jan Kamps, the author of the TechChrunch article, suggests instead calculating the gain of a person who would have invested each year the amount of the new iPhone in its most expensive version.We would then arrive at $147,000with an expense of approximately $16,000, resulting in a gain of approximately $131,000.