You’ve probably heard someone say it before. Or a variation of it. Or maybe you’ve thought of it yourself:
“If I owned Apple since its IPO, I could have turned like $5,000 into over $1,000,000!”
Apple was the first publicly traded US company to have a market cap of $1 trillion.
What I am going to do is show you two charts. It will be an exercise in perception. And it will be quick.
In 2004, a hedge fund called Private Capital Management made a massive bet. They found a company they liked and they decided to invest most of their portfolio in it. They had never made a bet this big.