How much is $10 000 invested in Microsoft in 1986?
A $10,000 Investment in Microsoft in 1986 is Worth $39 Million Today!
Microsoft investors had to hold through a decade of stagnation. Microsoft's return is even more impressive than Apple's, as it turned $1,000 invested in its 1986 IPO to $4.1 million now.
Achieving this milestone isn't a walk in the park by any means, but it can be more accomplishable than many realize, thanks to the power of investing and compound interest. A $10,000 investment in Microsoft 30 years ago, at the start of January 1994, would be worth nearly $2.4 million today with dividends reinvested.
Microsoft stock first went public on March 13, 1986 at $21 per share. By the end of the trading day, the price had risen to $28 per share. Now, the price is nearly 13 times higher, closing at $360.69 on Nov. 9.
The bottom line on Microsoft stock
Have a look at the above chart and you'll see that if you put a grand into MSFT stock two decades ago, today it would be worth more than $24,000. The same amount invested in the S&P 500 20 years ago would theoretically be worth almost $6,500 today.
This is the ninth time the company has split the stock since Microsoft went public back in March 1986. One original share will equal 288 shares after this split is effective.
Earlier dethroned by Apple in 2010, and in 2018, Microsoft reclaimed its position as the most valuable publicly traded company in the world. In April 2019, Microsoft reached a trillion-dollar market cap, becoming the third U.S. public company to be valued at over $1 trillion after Apple and Amazon, respectively.
Saving a million dollars in five years requires an aggressive savings plan. Suppose you're starting from scratch and have no savings. You'd need to invest around $13,000 per month to save a million dollars in five years, assuming a 7% annual rate of return and 3% inflation rate.
| Holder | # of Shares | Type |
|---|---|---|
| SPDR | 240,660,838.00 | Institution |
| Bill Gates | 206,992,934.00 | Insider |
| Fidelity Concord Street Trust | 119,686,108.00 | Institution |
| Invesco | 95,001,296.44 | Institution |
If you invest $10,000 and make an 8% annual return, you'll have $100,627 after 30 years. By also investing $500 per month over that timeframe, your ending balance would be $780,326. Exchange-traded funds (ETFs) and mutual funds are both excellent investment options.
Does Warren Buffett own Microsoft stock?
Buffett has never owned Microsoft stock, and for a very good reason.
What does that look like on a brokerage statement? Check out the above chart and you'll see that if you invested $1,000 in Apple stock 20 years ago, it would today be worth almost $530,000. The same $1,000 invested in the S&P 500 would have theoretically turned into $6,186 over the same period.
And if you had given your $1,000 investment a decade to grow, you'd have about $6,665 now — up nearly 540%, according to CNBC's calculations, which also factors in the company's various stock splits over the years.
According to our calculations, a $1000 investment made in February 2014 would be worth $5,971.20, or a gain of 497.12%, as of February 5, 2024, and this return excludes dividends but includes price increases. Compare this to the S&P 500's rally of 178.17% and gold's return of 55.50% over the same time frame.
For example, if an investment scheme promises an 8% annual compounded rate of return, it will take approximately nine years (72 / 8 = 9) to double the invested money.
To save a million dollars in 30 years, you'll need to deposit around $850 a month. If you make $50k a year, that's roughly 20% of your pre-tax income. If you can't afford that now then you may want to dissect your expenses to see where you can cut, but if that doesn't work then saving something is better than nothing.
Broadcom (AVGO)
Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) were among those splitting their stock then and the chipmaker can afford to do the same now. This makes it one of those potential stock splits for 2024. At just under $1,400 per share, it is ready.
12/31/86 Microsoft announces that, at the end of 1986, Microsoft employees number 1,442.
Microsoft hasn't indicated any plans for a stock split, but given its robust growth, this may be the year it joins its tech peers in splitting its high-priced shares.
Since Its IPO, Microsoft Has Created 8 Billionaires and an Estimated 12,000 Millionaire Employees. The significance of 1986 in Microsoft's history is monumental, marking the year the tech giant went public, a pivotal moment that laid the foundation for its remarkable growth journey.
What's worth more Apple or Microsoft?
Microsoft (NASDAQ: MSFT) recently overtook Apple (NASDAQ: AAPL) as the world's most valuable company.
1. Apple (AAPL) Apple designs and makes a variety of consumer tech products and has one of the best known brands in the world. Apple generated more than $200 billion in iPhone sales during its fiscal 2023 and total sales reached $383 billion.
According to EBRI estimates based on the latest Federal Reserve Survey of Consumer Finances, 3.2% of retirees have over $1 million in their retirement accounts, while just 0.1% have $5 million or more. However, there's a surprising amount of information to unpack.
Historically, the stock market has an average annual rate of return between 10–12%. So if your $1 million is invested in good growth stock mutual funds, that means you could potentially live off of $100,000 to $120,000 each year without ever touching your one-million-dollar goose.
After analyzing many scenarios, we found that 75% is a good starting point to consider for your income replacement rate. This means that if you make $100,000 shortly before retirement, you can start to plan using the ballpark expectation that you'll need about $75,000 a year to live on in retirement.
