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AAPL split 7 to 1. Congratulation to my followers!

June 10, 2014

My awesome guidebook The Psychology of Investing: How To Play the Game and Win! was published in 2009. I used that book as a textbook in my first (and only) workshop that I conducted based on my book. In that book I wrote something that I shouldn’t have written about how easy it is to make a lot on money in the stock market if you don’t follow the “experts.” 2009 was a once in a lifetime opportunity that average investors like me had to buy Apple shares at around $21 per share. Today those Apple shares split 7 to 1. That means that if you bought 10,000 Apple shares in 2009 today you would own 70,000 Apple shares at $93 per share, or six and a half million dollars! And, if you sell for capital gain the price you initially paid for each Apple share would be reduced to only $3 per AAPL share because of the split! Most of the participants in my workshop dropped out in disbelief before the end of the class. Why? I could quote the Nobel Price winner psychologist Dr. kahneman who said that most students are too lazy to analyse things. But, I wrote in my second book on investing that came out in 2011 that you should not tell investing students that it is easy to make big money in the stock market because they won’t believe you and you would lose credibility with them! The fact that Warren Buffett said the same in his book The Snowball, that it was easy to make money in the stock market if you know what you are doing, I still feel that I made a mistake assuming that I can can tell the truth like Warren and be believed. Anyway, I just wanted to share with you about the split. Investors usually make about 7% extra money the first year after a good big split. Be happy you have listened to me about Apple’s performance in 2009. It is nice to get a $70,000.00 dividend at the end of  2014 that you didn’t expect to get. Apple is on a roll. Do a correct analysis before you buy. What are you waiting for, a winning lottery ticket? That’s gambling and I don’t believe in it. I don’t like to take risk with my money!

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