I was on TikTok today and I came across a video that said if everyone bought an Apple stock with the same money to use to be an iPhone. For instance, for everyone iPhone you bought, imagine you bought an Apple stock instead, from the first iPhone you used till now, you are expected to be so much in profit. That felt like a very good idea for a second until I had a moment to think about it, well, this was my thought. Apple stock has a huge value and has been performing so well because people have been buying iPhone and the demand of iPhone has been increasing overtime. Every year people await the latest iPhone and create a trend making the iPhone look really cool.
source
This patronage and demand increase the value of Apple stock making people invest more in Apple. Now, imagine everyone who buys an iPhone buy an Apple stock instead, this will increase the Apple stock but what of the Apple phone who is buying it if everyone is busy buying the stock? The stock will increase because it’s been longed but who is going to get affected? The early investors which is the owners of the company will be very rich and wealthy because their stock share is increasing in value, what’s the point of having a valuable stock share in a computer meanwhile their revenue as a company is low because people are trading the stock instead of buying the iPhone.
It will get to a point, the owners of the company will get tired and sell all their stock because they are not making sales, leaving people who bought at the peak with a worthless stock value. So every motivational speaker that tries to make you feel bad for buying what you love instead of using it to buy the stock of what you love, remind them that the value of the stock won’t be sustainably high if people stop buying the product and starts buying the stock, because the product is what makes the stock value high.