Are there stocks available now that are priced low that could increase the same amount?
In: Economics
Are there stocks that low that could increase the same amount? Absolutely. That doesn’t mean it’s a good idea to try and find them. If people knew which stocks would blow up like that then they wouldn’t be so cheap.
Because 20 years ago Apple was swirling the toilet; everyone laughed when Apple held a giant press release for the iPod because the world was already filled with MP3 players. Apple changed the game by having very catchy commercials and actually providing you an avenue to legally obtain music through iTunes. Apple was a joke in the 90s.
>Are there stocks available now that are priced low that could increase the same amount?
If anyone knew the answer to this question, they’d have more money than Elon Musk, Jeff Bezos and Bill Gates combined.
They weren’t priced that low. You’re looking at spilt adjusted prices, those weren’t the actual trading prices.
~~Absolutely they were regarded as penny stocks.~~ Penny stocks are generally traded at under $5.00 and ~~NVidia and Apple were both under $2 in 2004.~~
*NVDA was trading between ~$10-28 in 2004 and AAPL share prices through 2004 were ~$21-68, so they were not penny stocks.*
Penny stocks are usually traded OTC, or over-the-counter. That means they aren’t traded via the major exchanges, but by a trader-broker network.
There are plenty of stocks available at under $5 that could be worth a fortune in 20 years. If you could go back in time and predict that certain stocks were head and shoulders above the rest, you would be well off if you bought and held them. Guessing which stocks will be great investments to hold? That’s up to you.
20 years ago? Not penny stocks just cheap.
For part 2, literally thousands… go find some pink sheets and hope you pick the <1% that are going to be a winner.
The term “penny stock” is usually reserved for small, unproven companies. They are a more risky investment because usually the company involved doesn’t have any real products yet, and it’s not uncommon to start fake companies with fake product roadmaps, pump the share price, sell your shares then let the company quietly go out of business.
Even during its low point Apple was already a big established company.
For NVidia maybe at the very beginning in 93 it could have been considered a penny stock (well, if they were selling stock), but once they had a track record of releasing products you probably wouldn’t refer to them as penny stock anymore.
You know you could just google it and find out what price they were 20 years ago, right? It’s not really something that needs to be EL5’d
They weren’t penny stocks, but they were low. I have a personal relevant story about this.
When I was in high school, for Christmas one year among other things as kind of a neat oddball present my dad bought and me and brother each one share of stock from a company we each liked. My brother got one share of Kristy Kreme which was pretty quickly delisted. I got one share of Apple stock. This was 2001.
Over the next twenty something years that one share split 2-1, 4-1, and 7-1. It eventually became 56 shares valued in the hundreds of dollars each. I just recently sold the whole bundle for a little over $11,000 as part of a down payment on my first house.
Thanks dad.
No. I remember when Apple dropped to $14/share in the 90s and there was a lot of doom and gloom and Bill Gates and Microsoft had to bail them out. There was talk that Apple could go bankrupt and turn into a penny stock but it was not considered a penny stock. I so wanted to buy $1000 back then but my father told me I was dumb and would lose all my money…
I don’t think they were ever considered penny stocks – generally speaking, companies stay privately traded until the shares are actually worth something, and then the company enters the stock market with an IPO.
They were certainly worth much less at one point. But “penny stocks” are usually companies whose stock is considered totally worthless, barring some sort of miracle happening. Even if a company is circling the drain, the stock usually still has some worth just on account of whatever assets the company has to sell off when it folds.
Are there stocks that are priced low now but that will eventually increase in value thousands of times over? Absolutely. Hundreds of them probably. The thing is, nobody can see the future, and the likely outcome is already priced in.
To explain what that means, say you somehow knew *for absolute certain* that Company ABC’s stock, currently trading for $10 a share, would be worth $100 a share in a year. What would you do? Well, first you’d buy all the shares you could get at $10 a share. Then you’d buy all the shares you could get at $11 a share. And you’d keep buying until you either ran out of money to buy more shares with, or until you bought up every last share you could buy for less than $100. And at that point, the future value of $100 would be priced in.
Now, of course, nobody knows for certain what the future holds, and there’s no such thing as a 100% sure bet. But the entire market is always betting on what they think is the most likely outcome. So generally speaking, the price that a stock is currently trading at is the entire stock market’s best guess about how much the stock will be worth in the future.
So, all stock trading is essentially gambling on against the market’s current best guess. All the sure bets are priced in.
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