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Thread: Steve Jobs lost $10B+ in 'dumbest trade ever

  1. #1
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    Steve Jobs lost $10B+ in 'dumbest trade ever

    http://www.fevermagazine.com/a/techn...-lost-10b.html


    He's the most-watched CEO in America. The creative genius behind the iconic Apple brand. The creator of some of the most sought-after tech products in the world.

    But he's also a really bad trader, according to Brett Arends' in the Wall Street Journal.

    Arends claims that Apple CEO Steve Jobs is responsible for "the dumbest trade ever," a move that cost him more than $10 billion.

    Here's how one of the world's most brilliant men made such a not-so-brilliant move:

    Amid the downturn of 2003, tech stocks were reeling. Apple stock sat at a mere $7 a share (adjusted for subsequent stock split), down from its peak of $36. The mood in Silicon Valley was not upbeat, to say the least. And all those stock options that tech employees had been given during better times seemed like not-such-great options as shares plummeted.

    Steve Jobs was apparently feeling this downbeat mood as he canceled his stock options in return for fewer shares valued at $75 million at the time. This move would've made financial sense if Apple hadn't boomed again.

    Fastforward seven years, enter the iPhone and iPad, and boy is Apple ever booming. The shares that Jobs got in 2003 are now worth $2.5 billion.

    But what if he hadn't made that trade for fewer shares back in 2003? What would those shares have been worth now? Drumroll please ... $12.8 billion. Yes, that one move back in 2003 cost Steve Jobs $10.3 billion.

    Apple did not respond to the Wall Street Journal when asked to comment.

    Jobs is still the 136th richest person in the world with a net worth of about $5.5 billion, according to Forbes.

  2. #2
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    I am not sure he was after making short term financial sense when he did that.

    Jobs is a really strange case, and watching him for signs of what you should be doing yourself is just going to get you in trouble.

    The guy goes off on eclectic missions, and his actions, while logical to the future vision he has in his mind, will not necessarily be actions that you will want to mimic.

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    Hindsight is 20/20 if I could predict the future I would be the richest man in the world. He made a decision based on what he knew at the time and what made financial sense at the time. Frankly he lost something he never had this a much better position than a lot of people in the market.
    Busy

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    Steve Jobs traded Babe Ruth?

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    Another person in UK had shares and sold early he woudl be worth quite a few billion now

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    Quote Originally Posted by Saoirse1916
    Steve Jobs traded Babe Ruth?
    Quote Originally Posted by cc3d (*edited by craze189)
    the most important question:

    Who is the 'short-haircut' chick from the Facetime commercial and where do we find out more about her?
    Quote Originally Posted by MI_canuck View Post
    On the same token, you don't NEED an iphone 4... It's a luxury. Not an essential part of human life. Doesn't work for someone? Plenty of other phones that will.

    ahhhh... Life was so much simpler back in the iPhone 2G days, when no one got a subsidized price, and the entitled minions of society were left out.

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    So what? Lots of rich people have done things that kept them from being even richer. Heck, lots of very rich people have gone bankrupt. More than once. At the end of the day Steve Jobs is worth more than anyone on this board, and certainly a heck of a lot more than the desk jockey who wrote that article. Jealousy's a *****.

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    Perhaps it's because it's a pet peeve of mine but Jobs didn't lose anything. He never had that money to start with so how could he lose it? Jobs missed an opportunity to EARN 10 billion, but he didn't lose it.

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    Quote Originally Posted by Rural Guy
    Perhaps it's because it's a pet peeve of mine but Jobs didn't lose anything. He never had that money to start with so how could he lose it? Jobs missed an opportunity to EARN 10 billion, but he didn't lose it.
    If you really are going to argue semantics, the 10 Billion wouldn't be 'earned', it would have vested via stock options. He already owned the options.
    Seems like it is cool to have these in your sig?

  10. #10
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    $2billion vs $10billion? Who cares. It's still a buttload of cash. He'll never go broke. I have no sympathy for poor old Stevie.
    The opinions expressed in this post reflect those of everyone, ever.

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