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.
Read full story from Wall Street Journal here.
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