In the Oscar winning film Forrest Gump, the main character makes an investment in shares of Apple Inc. (NASDAQ:AAPL) in the 1970s. A website facnydresscostumes.co.uk calculated what those shares would be worth today if the investment made by Forrest Gump was real, and he held on to it. The answer after calculations are made is surprising and exciting.
The role was been played by Tom Hanks, and luck favors him when he starts a shrimping business and makes his friend and former military colleague Lieutenant Dan the caretaker of the business. Both of them even get luckier when Dan very wisely invests the profits which they earn from the business in shares of a very small company called Apple Inc. (NASDAQ:AAPL).
According to the website, the starting investment is $100,000 which, though a notional sum, is quite believable because of the spectacular success garnered by Bubba Gump Shrimp Chain after the boats were wrecked in Hurricane Carmen.
Calculations
The Initial Public offering of Apple Inc. (NASDAQ:AAPL) came in 1980 and at that time, the total number of shares held by Gump and Dan would be equal to 1,476,460 shares, the worth of which would have been approximately $43 million at the end of the first trading day of the stock.
The novel Forrest Gump was released in 1986, and then the worth of the stocks held would have surged by $49 million. The movie Forrest Gump was released in 1994 and then the value of the shares would have been a massive $91.5 million.
At present, due to the startling success of Apple Inc. (NASDAQ:AAPL) in the 21st century, and after calculation of the worth of the shares held by Gump and Dan, plus accounting for two stock splits in 2000 and 2005, the total shares held by Forrest and Dan would be 11,811,680 shares.
On July 2, 2012, shares of Apple were trading at $591. Thus, the initial investment, which they both made in 1978, is worth $6,980,702,880 which is just shy of $7 billion, or £4,493,203,650.y.
Real Good News For Apple
Returning to the real world, last week David Einhorn of Greenlight Capital has increased his shareholdings in Apple Inc. (NASDAQ:AAPL) and is currently holding $1.5 million worth of Apple Inc. (NASDAQ:AAPL) shares.
Einhorn believes that Apple Inc. (NASDAQ:AAPL) will come up with more innovations in the future, and he is eagerly waiting for “Apple’s next blockbuster product.” He also said that the customer base of the company is expanding, and this is one of the reasons why he believes in the growth of the Apple Inc. (NASDAQ:AAPL) and has increased his holdings in the company.
