With Apple’s stock sky rocketing to its all-time high and Apple about to surpass Microsoft in valuation, it’s pretty interesting to compare its 5-year stock performance to its traditional arch-nemesis (well, at least until Apple decided that everyone is their nemesis). While Microsoft is up 16% since 2005, compared to -3.5% for the S&P, Apple shares soared a whopping 626%.
How many people remember that in 1997 Microsoft invested $150M in Apple and saved it from going bankrupt? Apple’s CFO Fred Anderson was quoted then saying: “This deal strengthens Apple’s viability. It’s a new era in terms of Apple and Microsoft working together“. Yeah right! They have been working together perfectly since; best friends just like me and the platoon sergeant in my basic training.
Lessons learned: Don’t try to avoid a threat of antitrust charges by helping your ailing, yet talented, competitor stay out of trouble.
Still, I would have rather invested $100,000 in Microsoft 25 years ago (I must acknowledge though it would have been a tough investment decision for an 8 years old). If I would have done so, this blog would have been written using a golden font.
(disclaimer: It’s a casual blog post for entertainment purposes; dividends and other factors were not taken into account)