He Sold 10% of Apple for $800
43sThe shocking contrast between $800 and billions creates immediate intrigue and emotional impact.
▶ Play ClipAI Summary
This video tells the story of Ronald Wayne, the third co-founder of Apple, who sold his 10% stake in the company for just $800 in 1976 out of fear. The narrator uses this historical anecdote to illustrate a broader lesson about how fear, rather than rational analysis, often drives investors to sell at the worst possible time.
[00:02]
Ronald Wayne's 10% stake
In 1976, Ronald Wayne owned 10% of Apple, alongside Steve Jobs and Steve Wozniak.
[00:16]
Selling out of fear
Wayne panicked, fearing the business could fail and he would be liable for debts, so he sold his entire share for only $800.
[00:28]
Missed fortune
That 10% stake would today be worth more than Spotify, Snapchat, Pinterest, Roblox, and Reddit combined.
[00:42]
The real mistake
The narrator clarifies that Wayne's mistake was not selling per se, but selling out of fear, a common pitfall in markets where people sell at the worst time due to emotion rather than numbers.
[00:58]
Current situation and lesson
Ronald Wayne is now 92 years old and lives in a mobile home on a pension. The video concludes with a reminder to resist fear-driven selling and to follow the channel for similar content.
Study Flashcards (5)
Who was the third co-founder of Apple?
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Who was the third co-founder of Apple?
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Ronald Wayne
00:02
What percentage of Apple did Ronald Wayne own in 1976?
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What percentage of Apple did Ronald Wayne own in 1976?
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10%
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For how much did Ronald Wayne sell his 10% stake in Apple?
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For how much did Ronald Wayne sell his 10% stake in Apple?
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$800
00:16
What was Ronald Wayne's reason for selling his Apple shares?
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What was Ronald Wayne's reason for selling his Apple shares?
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He feared the business could fail and he would be liable for debts.
00:16
What is the current value comparison of Ronald Wayne's 10% stake?
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What is the current value comparison of Ronald Wayne's 10% stake?
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It would be worth more than Spotify, Snapchat, Pinterest, Roblox, and Reddit combined.
00:28
💡 Key Takeaways
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Missed fortune comparison
Quantifies the opportunity cost in a striking way, making the story memorable.
00:28
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Fear as the real mistake
Shifts the focus from the sale itself to the emotional driver, offering a practical investing lesson.
00:42Full Transcript
[00:02] Apple for $800. I'm talking about Ronald [clears throat] Wind, the third founder of Apple, because in addition to Steve Jobs and Steve Bosniac there was a to Steve Jobs and Steve Bosniac there was a third one and in 1976 he owned 10% of
[00:16] the company, but he got scared. He thought the business could go to Pique and that he would end up paying the debts, so he panicked and sold his entire share for only $800. To give you an idea of what they
[00:28] missed out on, that 10% would be worth more than Spotify, Snapchat, Pinterest, Roblox, and even Reddit, all combined. And this is
[00:42] where the story stops being merely curious, because his mistake was not selling, And that happens all the time in the markets. We sell at the worst possible time, not because of numbers, but because of fear. Today Ronald Wayne is 92 years old and lives in a
[00:58] mobile home, living off his pension. So the next time fear tells you to sell, remember this story and follow us if you're interested in this type of thing.
