# profitable | DaveTrenholm.com Skip to content

Tag: profitable

The Parable of the Three Servants

Did you had $100 in 1986? The reason I ask is because I was doing some figuring this week, and I found out that if you had taken $100 in 1986 and deposited it in the bank – the interest rates were about a 5¼% back then -so today, with the compound interest, that $100 would be worth $390.41. That’s an increase of nearly 300%. That’s not too bad, eh?

But then I thought, well, then instead of putting that money in the bank in 1986 – what if we had instead invested it in a reputable company – What if we had invested it in Ford? Well, if we had invested that same $100 in Ford in 1986, today it would be worth $716.38. That’s a little bit better isn’t it? As you see on our little bar graph chart, that’s nearly twice as much as you would have made from the bank. That would have been a much better investment.

Now I know that some of you don’t really appreciate Ford vehicles, so you’re not likely to invest with them. So let’s say instead that you invested in another big name company – General Electric. That same $100 invested in 1986 in General Electric would now be worth some $1552.13. That’s a 1400 percent increase! That’s twice as much as Ford, and four times as much as the bank. If only you had know this back in 1986.

But you know, both Ford and General Electric are pretty ‘safe’ companies. They’ve both been around for a long, long time – over a hundred years now. What if we had been a little more risky and invested in a company that had just formed only ten years prior to 1986? What if we had invested in Apple Computers Inc.? Are you ready for this? Well, believe it or not, that $100 invested in 1986 in Apple Computers Inc, would now be worth… over $45,000. $45,818.81 to be specific. That’s just from a little $100 dollar investment. Isn’t that incredible? If you had $100 in 1986 – you could have done that!

But let me give you just one more scenario.

Leave a Comment