Twenty years ago, life looked a little different. While cellphones were fairly common sights, it was nothing compared to what would happen in 2007 when Apple (AAPL 0. 54%) introduced the first iPhone.
With the numerous iterations of the iPhone that ed, as well as other innovations including the iPad and AirPods, Apple grew to become the first company with a $1 trillion market cap.
Those who had the wherewithal to scoop up Apple stock a couple of years before the iPhone's debut -- and who have held their positions -- have similarly seen their investments flourish.
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What a difference an iPhone could make Those who were cautious in initial public offerings (IPOs), but who were also attracted to Apple stock, ly took their time after the company appeared on public in 1980.
If they had bought $10,000 in Apple stock in July 1985 and kept their position for the next 20 years, they'd have recognized an impressive 304% gain that resulted in a position worth $40,000.
On the other hand, investors who first bought Apple stock in July 2005 and have not trimmed their positions have recognized extraordinarily impressive growth.
An initial investment of $10,000 20 years ago would now be worth $1. 546 million. Will the next two decades vide the same growth.
Implementing a walled-garden apach, Apple has developed an ecosystem that contributes to its formidable competitive advantage among stocks.
This, along with its fierce customer loyalty, has resulted in Apple evolving into an industry stalwart over the past 20 years.
Whether the company has any transformative innovation waiting in the wings remains to be seen.
Similarly, it will take another 20 years before we can look back and see if Apple stock was able to replicate the performance it vided from 2005 through 2025.
What is certain, however, is that Apple stock remains a worthy consideration for any investor seeking exposure. Scott Levine has no position in any of the stocks mentioned.
The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.