Stock watch

Clem Cham­bers, CEO of ADVFN, the lead­ing stocks & shares web­site

Mac Format - - THE BIG STORY -

If you had bought Ap­ple shares on 5 De­cem­ber 2014, you would be right back where you started from as I write a year later.

You would have also seen the price as high as $132 and as low as $92. A $40-a-share range is the sort of volatil­ity that can be nerve-wrack­ing for any in­vestor but imag­ine if you were one of those peo­ple that bought a few thou­sand dol­lars of stock in Ap­ple at its pre-res­ur­rec­tion lows of around 20¢ and are still hold­ing. That $5,000 po­si­tion is now worth $2.9m.

This year that po­si­tion would have flown to $3.3m, then slumped to $2.3m and gone back to be worth $2.9m again. You would have to be ei­ther ex­tremely rich or cold-blooded for that to not give you stom­ach ul­cers.

This is the lot of any­body who puts all their money in a sin­gle com­pany’s stock, which is why the golden rule of in­vest­ing is to di­ver­sify. But, of course, most peo­ple do not do that.

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