As I shared in previous post, my first buck in Wall Street stocks was like a gamble. It was putting all my hard-earned money into the stock market – without any experience or knowledge about the business. It was making of a millionaire by accident!
Bought apple shares instead of an iPod – in 2003
Apple advertisements were very appealing (and still are.) Whether, it was Mac or iPod I wanted to own. I wanted to grab an iPod as it was so fancy for me.
On a bright summer day in Brussels, I went to the Media Markt to buy my dream – an iPod. I was impatient to start using waiting at the cash counter to pay. But, at the very last moment, I changed my mind after looking the tagline of the Apple advertisement – “Think Differently”. Following the new thought, I left the shop without purchase and reached to the broker to buy shares of Apple Inc. (AAPL) worth 450$. I got 24 shares at the price of 19$ per share, plus broker commission.
It was a good long-term investment!
Including 2 stock splits of 7:1 and 2:1 and many quarterly dividends, It is over 40,000 € profit!
My second investment in an unknown steel company resulted a huge profit of 843,000 $ !
I did not have to wait for my next investment. (Though, I knew nothing about investments, and it was not a planned purchase).
Since 1995, I started the job after graduation. My savings were 50 € each month after all the expenses and paying the bills. After 2-3 years, I started saving a bit more. Later, I changed some jobs and pay hikes.
Even then, my saving account had in total +/- 50,000 € (in year 2003).
In an evening, I was having a casual talks with my friend. I use to see people having profits and considered myself a novice when it comes to wealth creation ideas. This guy mentioned about steel company – AK Steel (AKS). Following my instincts, I put all my savings of many years in buying shares of the company. The stock was in penny cheap stock price 2.40 $/ share. I bought shares worth 48,000 $.
I was actually fortunate – this company turned around and it’s share was trading at 44.55 $ when I sold in November 2007.
This sell transaction was worth 891,000 $, Profit of 843,000 $ !
Millionaire by accident:
Between 2003 and 2007 Few more short-term trades made me a millionaire by accident.
As you can imagine, I was on top of the world after making huge profit.
In 2005, I bought my first real estate apartment in Central Brussels at 90,000 € (Of course, with mortgage)
… I will continue my timeline investment in my next post. Stay tunes and post your comments.