All of the recent excitement about the iPhone got me thinking about purchasing stock in Apple, something I wish I had done back in 2002 when a good friend of mine suggested I do so. Instead I bought shares of Boeing, and well, that's worked out just fine.
The excitement about the iPhone did not get my friends thinking about which stocks that they had bought, wished they'd bought, or might buy because it will benefit from the iPhone, no, instead, they talked about whether they would buy the iPhone itself. How strange!
To my great surprise, the consensus arrived at over dinner on my deck was a resounding no; no one would buy the iPhone. Why? It cost to much, this from a group whose wardrobe that very night I'm sure included at least one pair of $300 jeans, a few $100 t-shirts, and of course the latest fashion in flip flops. This also came from a group were each member has a new car that has been financed for 5 years, dines out several times a week, and seems to know no limit to what canine accessory their lucky pooches need next. I predict they will all have iPhones within the span of 6 months.
However, I was pleasantly surprised that there were no immediate iPhone takers. IPhones will make most of us a little less rich, but it will make some of us (Apple shareholders) a little more rich. I prefer to be a member of the little more rich crowd whenever I can, but most of my friends are members of the little less rich crowd all of the time.
The modern economy is a wonderful machine that allows its' users to be a member of one of these two classes. In the United States you can even choose which crowd to belong to. Even though you can choose, most of us are and will always be members of the little less rich crowd, but a few of us will choose to be members of the other class.
How do you choose to be a member of the little more rich class? Simply, by always living below your means. Living below your means, as long as you have enough to survive, will allow you to save money regularly, and will allow that money to last longer should you ever need to tap into it. Living below your means and saving money will allow you to purchase stock in the next Apple or Boeing, and then earn even more money when that company releases the next iPhone or super jet.
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i read today that not only is apple to close to selling out of the iPhone, but their profit margin is 55%. Wow, thats $275 a phone into Apple's shareholders collective pocket. add the cost of contracts that are worth several thousand dollars, and it is beginning to sound like leasing car.
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