The Herald reports that in August 2008 the share price for RIM was $132.40 and for Apple $176.03. Fairly close.
Today the price for Apple is $701.91 and RIM is $7.25.
So four years ago $100,000 would get you 568 Apple shares or 755 RIM shares.
If you had invested in RIM you would now have $5,475 left – you would have lost 95% of your $100,000.
If you had invested in Apple you would now have $398,744 and would have 299% of your $100,000.
Now it is very sad for all the RIM staff who have lost their jobs, and all the RIM investors who have lost 95% of their investment.
But this is how the market works. Some companies succeed, and some fail. Some people get rich, and some become poorer. Yes, you have massive income and asset inequality.
I’m not surprised by the fall off in value for RIM. Three years ago almost everyone in business had a Blackberry. Now I see one about as often as Haley’s comet. Quite simply Apple produced a much better product, and customers voted with their feet.Tags: Apple, Blackberry, iPhone