The world of Investing always involves risks. You have to know very well where you are going to do it, with what amount of money and to what extent you are going to use it in a diversified way. A relatively basic advice that it would seem that a young man in the United States did not apply when receiving an inheritance. And there are times when you win a lot in the stock market and other times when you have to wait several years to see if you heal investment.
A family inheritance of $800,000 that he decided to invest in Intel
This Reddit user shared his particular family drama on the social network. Of course, it’s not for less. First, let’s learn a little about his story. The young man received an inheritance from grandmotherwhich their parents obviously received first. Being in their third year of mathematics at university, they decided to turn the tables and entrust everything to their son’s intuition.
The inheritance was $800,000, of which he put $100,000 into a savings account and the other $700,000 in Intel stock
Your reasons to invest in Intel
The young man’s parents trusted him because they were proud of his knowledge and his good results in racing. Which What they didn’t want was to spend their inheritance “on garbage.” instead of investing it. The boy took a look at American companies and chose Intel:
- Increase in income: In the first quarter of 2024, Intel saw its revenue increase by 9%.
- Investment and restructuring: Intel is investing and restructuring, including massively l aying off thousands of people to optimize costs.
- Processor manufacturing: For the first time in a decade, Intel is manufacturing advanced semiconductors in the United States. In addition, it is receiving direct support from the U.S. government in the form of R&D funds.
- Market position: Intel could be the primary or sole manufacturer for NVIDIA and AMD if those companies were to switch manufacturers due to tensions between China and Taiwan.
- AI PC Shipments: Intel hopes to exceed its goal of shipping 40 million AI-enabled PCs by the end of 2024.
But the news is not all good and stocks have fallen to levels seen 20 years ago.
Just one day after buying the shares, the worst happened. Intel has fallen. First came the announcement that 15% of the workforce would be laid off. Then came budget cuts and a very poor earnings report. That’s when the stock they fell by almost 30% and it became one of the worst days after the .com bubble burst in the 2000s.
My parents still don’t know that I lost a third of my inheritance. Every time I talk to them, they ask me what’s going on. How can I explain this to you? My only option is to hold this job for a decade.
Intel shares fall in one day
The young man would have lost about $200,000 investment. It is true that he did not really lose anything, it is just that with the same money a day later he could have bought many more shares. As he comments, your only option is to keep them for years and I hope that at least the investment made will be recovered. He talks about a decade, but if you look at Intel’s progress over the last ten years, the progress is very minimal.
Evolution of Intel shares throughout its history
Maybe you should have paid more attention to Apple
Among technology companies, Apple is one of the largest in the United States and is largely the “culprit” of Intel that has reached this situation. First with the iPhone and later with Apple Silicon processors for Mac. While Apple currently relies on manufacturing its chips in Taiwan, it has plans outside of China in case tensions between China, Taiwan and the United States escalate.
Evolution of Apple shares throughout its history
If we look at Apple’s evolution over the last ten years and with an investment similar to the one he made, of 700,000 dollars, His fortune would have been greatly multiplied and I would be a millionaire.
|
Stock Price (August 16, 2004) |
Stock Price (August 16, 2024) |
Profit earned |
|
|---|---|---|---|
|
Intelligence |
$12.36 |
$20.87 |
$485,056 |
|
apple |
$0.46 |
$226.05 |
$344,129,951 |
In this comparison, the investment in Apple would have generated a much higher gross profit than the investment in Intel. Although it must be taken into account that Apple’s growth with the launch of the iPhone and In the coming years it will be really difficult to repeat. Yet, year after year, Apple increases its value and analysts are convinced that this trend will continue. Above all, supported by services, the iPhone and new products hitherto unknown or nascent like Apple Vision Pro.
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