How much money would I have if I invested in Microsoft in 1986?

How much money would I have if I invested in Microsoft in 1986? Find out how much money you would have today if you had invested in Microsoft in 1986.

How much money would I have if I invested in Microsoft in 1986?

In 1986, Microsoft had already established itself in the market with its popular operating system, MS-DOS. However, it was not until the late 1980s and early 1990s that the company experienced exponential growth with the release of its Windows operating system.

At the time of Microsoft's initial public offering (IPO) in 1986, the stock was priced at $21 per share. If you had invested $1000 in Microsoft shares during the IPO, you would have been able to purchase approximately 47 shares, excluding any brokerage fees.

Microsoft's stock began to climb steadily in the years following the IPO. By the end of 1987, the price per share had more than doubled to $44. In 1990, Microsoft released Windows 3.0, which further solidified its dominance in the software industry. The stock price continued to rise, reaching $100 per share in 1992.

However, it was in the mid-1990s that Microsoft truly skyrocketed in value. The release of Windows 95 in 1995 brought about a technological revolution and increased the company's market capitalization. By 1999, Microsoft's stock price had surged to around $119 per share.

During the dot-com bubble of the late 1990s, many technology stocks experienced astronomical increases in value. Microsoft was no exception. By the end of 1999, the stock price had reached an all-time high of $119.94 per share.

If you had held on to your Microsoft shares and not sold them during the dot-com bubble, your investment would have continued to grow. Despite the burst of the bubble in 2000, Microsoft's stock remained relatively strong. By 2010, the stock price had quadrupled compared to 1999, reaching approximately $48 per share.

In recent years, Microsoft's stock price has continued to rise. As of September 2021, the stock is trading at approximately $300 per share. This remarkable increase over the years is a testament to the company's resilience and ability to adapt in a rapidly changing technological landscape.

To calculate the exact amount of money you would have if you had invested in Microsoft in 1986, you would need to consider factors such as stock splits, dividends, and reinvestment of dividends. However, without taking these factors into account, a simple calculation based on the stock price growth would give you a rough estimate of the value of your investment.

Based on the stock price history, if you had invested $1000 in Microsoft in 1986, your investment would be worth approximately $9697.68 today. This estimate assumes that you did not sell any shares along the way and did not take into account any fees or taxes.

In conclusion, investing in Microsoft in 1986 would have been a remarkably profitable decision. The company's immense success over the years has made it one of the most valuable and influential technology companies in the world. If you had the foresight to invest in Microsoft during its early years, you would have seen your investment grow significantly over time.


Frequently Asked Questions

1. How much would $1,000 invested in Microsoft in 1986 be worth today?

If you had invested $1,000 in Microsoft in 1986, it would be worth approximately $11.4 million today, taking into account stock splits and growth in Microsoft's stock price.

2. What was the initial public offering (IPO) price of Microsoft in 1986?

The IPO price of Microsoft in 1986 was $21 per share.

3. How much profit would I have made if I invested $10,000 in Microsoft in 1986 and held it until today?

If you had invested $10,000 in Microsoft in 1986 and held it until today, your investment would have grown to approximately $114 million, taking into account stock splits and the growth in Microsoft's stock price.

4. How has Microsoft's stock performed since 1986?

Microsoft's stock has performed exceptionally well since its IPO in 1986. It has experienced significant growth, with a combination of stock price appreciation and stock splits, making it one of the most successful investments in history.

5. What factors contributed to the success of Microsoft's stock since 1986?

Several factors contributed to the success of Microsoft's stock since 1986, including its strong market position in the technology industry, continuous innovation, successful product launches (such as Windows operating system and Office suite), and strategic acquisitions. These factors have driven the company's growth and increased investor confidence, resulting in a significant increase in its stock price.