|Re: Why did this HP-01 fetch so high a price?|
Message #16 Posted by Thor Lansen on 14 Dec 2007, 3:05 p.m.,
in response to message #14 by Stefan Vorkoetter
According with the HP Museum the price of the Stainless Steel HP-01 was $650 (1977-1980 period).
If you would have invested $650 in the S&P 500 back in 1977, 1978, 1979, 1980 you would have at least $9,120, $10,285, $10,320, and $9,175 respectively (maybe a bit less the way the Stock Market is doing today). So, $5,000 now for that watch (almost new) it is a bargain (yet, I would not buy it, not my cup of tea).
Note 1: I edited my post to reflect a bit more accurate returns of the S&P 500 I found after I posted. The Compound Annual Growth Rate (CAGR) from Jan 1 1977, 1978, 1979, 1980 to Dec 31 2006 was 8.96%, 9,74%, 10.12%, and 10.03% respectively. And for this year the S&P 500 up 6.85% (as of 12/13/07).
Note 2: The CAGR returns are just capital gains, not dividends so you would have earned more than what my figures show and that is the reason I said "at least" above.
Edited: 14 Dec 2007, 4:52 p.m. after one or more responses were posted