Every age has technology that changes the world.
Businesses at the forefront can produce exponential returns.
In the early 1980s, when I was a kid, I was introduced to the personal computer. A family friend was the teacher in charge of computing at Hawera High School. He had an Apple II in his cosy study at home. Whenever we visited, I spent as much time as I could with the Apple.
Learning about computers became central to our lives. Schools had computer shows for parents and kids to come in on the weekend and learn about the latest systems they were installing.
Excerpt from an Apple IIc advertisement: ‘Why every kid should have an Apple after school.’
Source: ComputerHistory.org
These were the booming days of the 1980s, when everything was new, exciting, and American.
From the age of 8 or so, computers consumed my life. And that of many of my friends.
My parents bought a System 80 (a local Dick Smith clone of the US TRS-80) as our first PC. I learnt to programme in BASIC. And of course, games became a chief source of entertainment.
System 80, popular in New Zealand and Australia.
Source: Classic Computers
Later, these would become more visually dynamic with the advent of the Commodore 64 and Atari XE. Still a far cry from the high-tech flight simulator my son plays on his Xbox today.
In the early 1990s, while still in high school, I built a small business in Taranaki selling computer peripherals by mail order. I sold it to pay for my first year at Auckland University.
Source: Daily News, September 1992 / Author
Looking back to the 1980s, it’s interesting to note that, in today’s money, we probably paid around NZD $5,000 for personal computers like the Apple IIc. You can see the benefit of cheap manufacturing in China. These days, when I buy high-quality Dell laptops for my kids, even with decent specifications, we’re only spending around $1,500.
Having studied finance, with the knowledge I have today, this is clear…
I missed a much greater opportunity in the personal-computer revolution
Had we invested USD $1,000 in 1985 in the Company that made the Apple II in my family friend’s study, this would have been the result:
Source: Google Finance
Yes, had you bought Apple shares for 10c a piece back in May 1985, you would have 10,000 shares.
By May 2025, that could be worth USD $2,112,600.
For less than what we spent on a home computer in 1985 — a computer long since cast to the relics of tape-deck history — I could have had enough cash to buy a premium home on Auckland’s North Shore.
Apple was one of the sector’s top performers. Today, it is a Company that goes far beyond computers.
If I had instead put the $1,000 in Hewlett-Packard [NYSE:HPQ] — whose stock was around $1 in 1985 — I would today have 1,000 shares worth around USD $25,000.
Companies are not created equal. When new trends emerge, they can take very different paths.
The makers of our first PC, Dick Smith Electronics [ASX:DSH], went into receivership in 1986. Similarly, Tandy exited the PC business in 1993.
Well, there’s a new revolution afoot today.
It could change the world. Just as the PC revolution did back in the 1980s.
Smart investors will not only use the technology. They will invest in companies likely to lead and win with it…
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Simon is the Chief Executive Officer and Publisher at Wealth Morning. He has been investing in the markets since he was 17. He recently spent a couple of years working in the hedge-fund industry in Europe. Before this, he owned an award-winning professional-services business and online-learning company in Auckland for 20 years. He has completed the Certificate in Discretionary Investment Management from the Personal Finance Society (UK), has written a bestselling book, and manages global share portfolios.