Apple's devoted shareholders get rich, and hang on
By Jessica Toonkel
NEW YORK (Reuters) - When Anton Marinovich turned 18, his grandmother gave him $1,000 with strict instructions to invest in the stock market. He chose Apple Inc (AAPL.O).
Seventeen years later, his investment is worth more than $240,000 and will bring him over $1,000 a quarter through the company's new dividend plan.
"It's pretty bananas," Marinovich said. "I always hear about all these people here in Silicon Valley falling into huge luck, but I never thought it would happen to me," said Marinovich, who is the director of sales at Equilar, a Redwood City, California-based executive compensation consultant.
Watching Apple shares soar more than 77 percent over the past 12 months has been a wild ride for people like Marinovich, who are firmly planted in the cult of Apple. Between him and his fiancee they own two iPhones, two MacBooks an iPad and 400 shares of Apple.
Many loyalists bought stock years ago when shares languished at double-digit prices. The held on to it out of a love for the company and its products. Now, they are being richly rewarded by a share price of around $600 and a rich dividend payout from Apple's cash pile of nearly $100 billion.
Nearly two dozen individual Apple shareholders interviewed by Reuters say they are not going on crazy spending sprees or vacations to Fiji, de spite the huge windfall they could get by cashing out. Practically none of them said they plan to sell, a loyalty that gives some of their financial planners heartburn.
That's not to say they aren't treating themselves - or breathing a little easier.
Marinovich said the comfort of his Apple investment cushion means more freedom in his spending habits. He recently bought himself a $2,000 Omega watch and is shopping for a new Audi to replace his Volkswagen Jetta.
Retiree Pat Harshbarger, 79, has seen her $13,800 investment in Apple rise to $46,000. That paper wealth has made the former nurse comfortable enough to consider taking a few more trips to Maine to visit family and one to Las Vegas, where she and her husband want to try their hand at the slot machines, she said.
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Apple's devoted shareholders get rich, and hang on