# What should I do with four shares of Apple stock?
**URL:** https://boards.straightdope.com/t/what-should-i-do-with-four-shares-of-apple-stock/616250
**Category:** In My Humble Opinion
**Created:** [March 19, 2012, 7:40pm UTC](https://boards.straightdope.com/t/what-should-i-do-with-four-shares-of-apple-stock/616250 "2012-03-19T19:40:21Z")
**Posts on this page:** 20
**Page:** 1
### Author:  [@MacTech](https://boards.straightdope.com/u/MacTech)
#### Post date: [March 19, 2012, 7:40pm UTC](https://boards.straightdope.com/t/what-should-i-do-with-four-shares-of-apple-stock/616250/1 "2012-03-19T19:40:21Z")
Around 1999/2000ish, I bought a couple shares of Apple stock for around $50 a share, right before the stock split, so right now I have a whopping four shares of Apple stock
Right now I’m mulling over my options, as I’m feeling the urge for a Retina display iPad…
I see my options as;
1; hold on to the stock and hope it keeps going up in value, I’ve been sitting on it for 10 years plus, I can weather a few more ups and downs
2; sell ONE share and use the proceeds to get my iPad
3; sell TWO shares and get a new iPad and pay off the balance on my iMac I purchased on Best Buy’s 0% for 18 month finance plan ( I have 15 months left)
4; sell THREE shares, get an iPad and put the rest into the bank to pad my checking account
I dont plan to sell them all, I’m keeping a minimum of one share, just to remain a stockholder
Of the above options, the first two appeal the most to me, I especially like that if I choose option 2, Apple is basically _paying_ me to get an iPad…
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### Author:  [@Living\_Well\_Is\_Best\_Revenge](https://boards.straightdope.com/u/Living_Well_Is_Best_Revenge)
#### Post date: [March 19, 2012, 7:48pm UTC](https://boards.straightdope.com/t/what-should-i-do-with-four-shares-of-apple-stock/616250/2 "2012-03-19T19:48:34Z")
I would do option 3.
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### Author:  [@Doug\_K](https://boards.straightdope.com/u/Doug_K)
#### Post date: [March 19, 2012, 7:49pm UTC](https://boards.straightdope.com/t/what-should-i-do-with-four-shares-of-apple-stock/616250/3 "2012-03-19T19:49:12Z")
Keep it! They’re going to start paying quarterly dividends of $2.65 per share. That’s like $42.50 a year. In about 12 years you could buy another share and earn even more.
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### Author:  [@crookedteeth](https://boards.straightdope.com/u/crookedteeth)
#### Post date: [March 19, 2012, 7:53pm UTC](https://boards.straightdope.com/t/what-should-i-do-with-four-shares-of-apple-stock/616250/4 "2012-03-19T19:53:46Z")
I’d do option one, or maybe two, but hold onto the rest for a rainy day. If you pad your bank account you’ll be more likely to spend it because you have it. As long as the stock value increases more than the rate of inflation, you’ll make more money in the long run.
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### Author:  [@Munch](https://boards.straightdope.com/u/Munch)
#### Post date: [March 19, 2012, 7:56pm UTC](https://boards.straightdope.com/t/what-should-i-do-with-four-shares-of-apple-stock/616250/5 "2012-03-19T19:56:32Z")
Apple just announced today that they’re switching over to paying out dividends to shareholders, so you might want to consider a bit more strongly whether you want to keep all four.
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### Author:  [@Duckster](https://boards.straightdope.com/u/Duckster)
#### Post date: [March 19, 2012, 8:21pm UTC](https://boards.straightdope.com/t/what-should-i-do-with-four-shares-of-apple-stock/616250/6 "2012-03-19T20:21:10Z")
Option #3. Apple shares should tank within about nine months.
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### Author:  [@Finagle](https://boards.straightdope.com/u/Finagle)
#### Post date: [March 19, 2012, 9:19pm UTC](https://boards.straightdope.com/t/what-should-i-do-with-four-shares-of-apple-stock/616250/7 "2012-03-19T21:19:15Z")
> [@Duckster](#):
>
> Option #3. Apple shares should tank within about nine months.
I’d like to hear your reasoning behind this claim. There are lots of scenarios in which it \* could \* happen, but just flinging it out there is kind of lame.
For the OP – no harm in taking some profits after a 24X run-up. Sell a couple of shares, keep the rest, and don’t forget that you owe Uncle Sam 15% of whatever you gains you get from your investment. You don’t want to spend it all now and find you owe an extra couple of hundred next April.
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### Author:  [@MacTech](https://boards.straightdope.com/u/MacTech)
#### Post date: [March 19, 2012, 11:23pm UTC](https://boards.straightdope.com/t/what-should-i-do-with-four-shares-of-apple-stock/616250/8 "2012-03-19T23:23:07Z")
As far as option 3 goes, the only reason I included it was that I hate having unnecessary bills hanging over my head, I have no problem paying off the iMac within the allotted time frame, I’m actually planning to pay it off sooner, plus, it’s 0% financing, so there’s no downside to stretching out the payments
Option 1 and 2 are the most appealing, but since I’m in no particular rush to get an iPad anyway (don’t really need one, just would be nice to have), I can wait for a bit and see how things go stock price wise
With my luck, I’d sell the share(s) just before Apple does another split, and/or the stock price climbs dramatically, OR I hold on to the shares and the stock price drops dramatically
maybe selling just the one share would be logical, I certainly can’t afford to purchase any more Apple stock with it hovering around the $600/share price, and if I did sell a share I couldn’t replace it for anywhere close to what I paid for it
right now, option 1 and 2 are basically neck and neck, currently option 1 has a slight lead…
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### Author:  [@Moonlitherial](https://boards.straightdope.com/u/Moonlitherial)
#### Post date: [March 19, 2012, 11:29pm UTC](https://boards.straightdope.com/t/what-should-i-do-with-four-shares-of-apple-stock/616250/9 "2012-03-19T23:29:29Z")
Option 2 - sell 1 and get an iPad.
Here’s my justification:
You invested $100 several years ago and the future is always uncertain. This method regains you your initial investment + an iPad and therefore although you can be happy or sad about whatever changes happen to the stock in the future you can’t actually lose money.
Also, I agreed to the new iPads mostly because my husband whined a lot but holy hell that retina display is beyond awesome.
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### Author:  [@sitchensis](https://boards.straightdope.com/u/sitchensis)
#### Post date: [March 19, 2012, 11:52pm UTC](https://boards.straightdope.com/t/what-should-i-do-with-four-shares-of-apple-stock/616250/10 "2012-03-19T23:52:00Z")
2: Pull your investment out and play with house money
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### Author:  [@Algorithm](https://boards.straightdope.com/u/Algorithm)
#### Post date: [March 20, 2012, 12:41am UTC](https://boards.straightdope.com/t/what-should-i-do-with-four-shares-of-apple-stock/616250/11 "2012-03-20T00:41:40Z")
If you don’t need the money, and your portfolio is otherwise diversified, hold on to the shares. Apple looks good on paper and there’s no indication the company is going to tank any time soon. Give them time to grow under Tim Cook, and collect the dividend while you watch.
Disregarding the capital gains for now, the dividend is excellent for you given your original investment, even all these years later.
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### Author:  [@Fiendish\_Astronaut](https://boards.straightdope.com/u/Fiendish_Astronaut)
#### Post date: [March 20, 2012, 2:29am UTC](https://boards.straightdope.com/t/what-should-i-do-with-four-shares-of-apple-stock/616250/12 "2012-03-20T02:29:46Z")
I’m no economist but I’m going to guess that this dividend business marks the end of the good times for Apple. Nothing worse than a company whose decisions are based on the pressures applied by shareholders to generate money. Soon enough the money will matter a lot more than the products.
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### Author:  [@Duckster](https://boards.straightdope.com/u/Duckster)
#### Post date: [March 20, 2012, 3:06am UTC](https://boards.straightdope.com/t/what-should-i-do-with-four-shares-of-apple-stock/616250/13 "2012-03-20T03:06:57Z")
> [@Finagle](#):
>
> I’d like to hear your reasoning behind this claim. There are lots of scenarios in which it \* could \* happen, but just flinging it out there is kind of lame.
[Enjoy](http://www.thereformedbroker.com/2012/03/19/that-apple-to-natural-gas-ratios-getting-awfully-stretched/).
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### Author:  [@Amblydoper](https://boards.straightdope.com/u/Amblydoper)
#### Post date: [March 20, 2012, 3:38am UTC](https://boards.straightdope.com/t/what-should-i-do-with-four-shares-of-apple-stock/616250/14 "2012-03-20T03:38:26Z")
> [@Fiendish\_Astronaut](#):
>
> I’m no economist but I’m going to guess that this dividend business marks the end of the good times for Apple. Nothing worse than a company whose decisions are based on the pressures applied by shareholders to generate money. Soon enough the money will matter a lot more than the products.
Read the first few paragraphs of this article.
> **[Apple's dividend and share re-purchase plan: the impact on cash growth](https://www.asymco.com/2012/03/19/apples-dividend-and-share-re-purchase-plan-the-impact-on-cash-growth/)**
>
> Today Apple announced both a dividend and a share re-purchase plan which, when combined, will consume 45% of Apple’s current US cash reserves. The dividend will be $2.65/share/quarter and the…
Apple’s Cash stockpile will continue to grow under this new plan.
For years, people have been asking why Apple has hoarded cash, and they always had the same answers. They want the cash to leverage future investments, like buying out the world’s supply of flash memory to keep prices low (so they can make more cash). Its a solid business strategy that grew from Apple’s flirt with death in the late 90’s.
But what has changed recently that made them change their minds about the cash hoard? I think it is that the marginal increase in cash reserves is no longer more beneficial then paying out dividends or buying back shares.
This is not a sign of the end for Apple. Look at who is behind the wheel: Tim Cook. He has been the mastermind behind Apple’s financial success for many years. What evidence do you have to suggest that he is pressured by shareholders?
I think this is a bold move that will probably pay off in the long run. Apple is known for bold moves that pay off.
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### Author:  [@Sunspace](https://boards.straightdope.com/u/Sunspace)
#### Post date: [March 20, 2012, 4:28am UTC](https://boards.straightdope.com/t/what-should-i-do-with-four-shares-of-apple-stock/616250/15 "2012-03-20T04:28:20Z")
I think this marks Apple’s transition to the status of ‘mature company’.
In a few years, when the new headquarters is done, the decline will begin. 🙂
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### Author:  [@Algorithm](https://boards.straightdope.com/u/Algorithm)
#### Post date: [March 20, 2012, 4:43am UTC](https://boards.straightdope.com/t/what-should-i-do-with-four-shares-of-apple-stock/616250/16 "2012-03-20T04:43:21Z")
> [@Duckster](#):
>
> [Enjoy](http://www.thereformedbroker.com/2012/03/19/that-apple-to-natural-gas-ratios-getting-awfully-stretched/).
Why do you find that ratio meaningful, as opposed to more traditional metrics of stock value such as P/E? Are you aware that natural gas futures have dropped by around 50% since last June?
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### Author:  [@UncleRojelio](https://boards.straightdope.com/u/UncleRojelio)
#### Post date: [March 23, 2012, 8:53pm UTC](https://boards.straightdope.com/t/what-should-i-do-with-four-shares-of-apple-stock/616250/17 "2012-03-23T20:53:04Z")
Hold on to it. [You will triple your money by 2015](http://www.forbes.com/sites/ericjackson/2012/03/21/why-apple-will-hit-1650-by-the-end-of-2015/).
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### Author:  [@Ravenman](https://boards.straightdope.com/u/Ravenman)
#### Post date: [March 23, 2012, 9:05pm UTC](https://boards.straightdope.com/t/what-should-i-do-with-four-shares-of-apple-stock/616250/18 "2012-03-23T21:05:19Z")
> [@Algorithm](#):
>
> Why do you find that ratio meaningful, as opposed to more traditional metrics of stock value such as P/E? Are you aware that natural gas futures have dropped by around 50% since last June?
What? You haven’t heard of the libertarian natural gas bugs who want a return to the propane standard?
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### Author:  [@Skammer](https://boards.straightdope.com/u/Skammer)
#### Post date: [March 23, 2012, 9:33pm UTC](https://boards.straightdope.com/t/what-should-i-do-with-four-shares-of-apple-stock/616250/19 "2012-03-23T21:33:01Z")
I’d sell one share, _not_ buy and iPad, and pay off the iMac. But I’m pretty frugal and I hate having debt out there even at 0%.
Okay, I might get the iPad too. But I would definitely pay off the iMac first.
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### Author:  [@sachertorte](https://boards.straightdope.com/u/sachertorte)
#### Post date: [March 23, 2012, 10:02pm UTC](https://boards.straightdope.com/t/what-should-i-do-with-four-shares-of-apple-stock/616250/20 "2012-03-23T22:02:12Z")
> [@Fiendish\_Astronaut](#):
>
> I’m no economist but I’m going to guess that this dividend business marks the end of the good times for Apple. Nothing worse than a company whose decisions are based on the pressures applied by shareholders to generate money. Soon enough the money will matter a lot more than the products.
The dividend does not generate money. All the dividend does is move a small part of the giant pile of money from one place (centralized bank account) to the shareholders’ many bank accounts. The dividend is already “owned” by the shareholders in that owning a share of Apple stock means owning a share of the giant pile of money.
When the dividend pays out, the value of the stock drops by the same amount.
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