Three Stocks I Missed Out On
And why I’m not rich or am I?
Apple at $80 in October 1999.
Netflix at $77 in December 2011.
Bitcoin at $1,100 in April 2017.
In 1999 I wanted to get “into the market” beyond my 401K and buy some stocks. I was a new user of Apple products and thought there was a lot of promise to their future. At the time the stock was around $80 a share. I thought that was too expensive and Apple was too unproven. I went with the cheaper Microsoft stock instead. I still have that Microsoft stock and it has done very well. But oh what if I had gone in for Apple.
$1,000 invested in Apple in October 1999 would be worth $216,622 today.
I was a big believer and user of Netflix’s DVD delivery service in 2011. For about $10 a month you got a series of DVDs of your choosing mailed directly to your door. Fabulous. Much better than driving to Blockbuster. Netflix was dabbling into the streaming market at this time and decided to branch off their delivery service and streaming service. The subscription rate went to $16. Subscribers revolted at the price hike and the stock tanked 35% practically overnight, going from about $300 to $77 a share. I gave serious thought to buying in at the low as I was still a believer in their model. Maybe this was my chance to get in. I didn’t.
$1,000 invested in Netflix in December 2011 would be worth $30,790 today.
In April 2017 I had vaguely heard of this new thing Bitcoin. I was at an ACAMS (Association of Certified Anti-Money Laundering Specialists) conference where it was a topic peppered into some of the presentations. It definitely had a buzz amongst the attendees. I visited the Treasury Department’s FINCEN (Financial Crimes Enforcement Network) Industry booth and struck up a conversation about Bitcoin* and how to buy it. I gave serious thought to buying it. It was at $1,100 at the time. In the end, I thought it was too expensive, too volatile, and I didn't understand it.
$1,000 invested in Bitcoin in April 2017 would be worth $35,118 today (even with the recent serious drop).
Taking all three into consideration, that $3,000 I could have invested would be $282,000 today.
Why didn’t I do it?
I’m risk-averse. I overanalyzed all of them. I just couldn’t pull the trigger and dive in.
Instead, I continued my more plodding approach.
I contributed up to 10% to my work 401K’s and ensured I received my employer’s matching contribution. I rolled all my old employer 401K’s into IRA’s. I opened a Roth IRA. I focused heavily on index funds. I dollar cost averaged buying small portions of Microsoft stock. I bought some Treasury bonds. I bought my kids some 459 Custodial funds for their college expenses. We bought into the Florida Prepaid College Plan. My kids got Florida Bright Futures scholarships. I invested my Navy Reserve pay into the TSP (Thrift Savings Plan). We lived within our means.
The result, over that same period of time the money I invested is up 95%.
Some might consider me rich. I don’t, at least not financially. I am comfortable and able to retire early. My family is intact. My health is good (after multiple cancer episodes). I enjoy each day and am thankful for whatever it brings.
I’m rich after all. But oh what it could have been. Still — no regrets.
*Bitcoin is not a stock, I used it in this context as an investment.
