Former White House communications director and current investor, Anthony Scaramucci's forgotten investment in Microsoft Corporation (NASDAQ:MSFT) stock for his newborn son turned into a powerful lesson on the rewards of long-term investing.
What Happened: Last year, during a recent appearance on The Julia La Roche Show, Scaramucci shared how, at 28 years old, he purchased $1,200 worth of Microsoft stock for his son, AJ, shortly after his birth in September 1992.
At the time, he opted to check the box to reinvest dividends, even though Microsoft wasn't paying any.
“I had an account, it was for my son AJ,” Scaramucci recalled. “He was born on the 23rd of September in 1992. On Oct. 1, I bought him $1,200 of Microsoft.”
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Back then, with no internet access and only paper statements being mailed, Scaramucci moved a few times, and his brokerage, Goldman Sachs, lost track of his address. The account sat untouched for nearly three decades.
“We found the account, it was 26–27 years later,” Scaramucci said. “I think I said it went up $88,000, but my son said, ';No, Dad, it went up $288,000.'”
Previously, during a podcast, Scaramucci incorrectly shared that his investment went up around $72,000.
The longtime investor admitted he would have likely sold the stock during Microsoft’s stagnant period under former CEO Steve Ballmer had he known he still owned it.
“There was a period of time when Steve Ballmer was running that company… they were flatlining at Microsoft for about eight or nine years,” Scaramucci said. “I would have sold that stock, didn’t know I owned it, and it ended up being a big win.”
Why It’s Important: Microsoft went public on March 13, 1986, with an initial offering price of $21. Shares closed their first day of trading at $27.75, with more than 2.5 million shares exchanged.
Over the years, Microsoft underwent several stock splits, including 2-for-1 splits in 1987 and 1990, followed by 3-for-2 splits in 1991 and 1992. Additional 2-for-1 splits occurred in 1994, 1996, 1998, 1999, and 2003.
Accounting for splits, Scaramucci's $1,200 investment would have bought approximately 784.313 shares. Based on Microsoft’s current share price, those shares are now worth around $306,792.15.
Price Action: Microsoft shares have declined 6.55% year-to-date and 2.76% over the past 12 months. However, the tech giant's stock has surged 124.07% over the past five years. On Monday, the share price closed at $391.16, down 0.18%, according to Benzinga Pro.
Based on Benzinga Edge Stock Rankings, Microsoft holds a growth score of 64.68% and a momentum rating of 41.89. Click here to see how it stacks up against other top tech companies.
Currently, Microsoft has a consensus price target of $494.57 from 33 analysts, with Truist Securities setting the highest target at $600 as of Oct. 28. The three latest ratings from Goldman Sachs, Piper Sandler, and Barclays suggest an average target of $438.33, indicating a potential upside of 12.11%.
Photo Courtesy: Al Teich On Shutterstock.com
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
