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The $2,000 iPad
WSJ ^ | 3/31/11 | Brett Arends

Posted on 03/31/2011 7:36:01 PM PDT by harpu

When someone asks me if I've changed my mind yet and now want one of Apple's new iPads, I tell them: "Well, even if I did, I probably wouldn't want to spend $2,000 on one."

They generally looked at me, baffled. "What do you mean, $2,000? I thought they started at $500." But I figure $2,000 is the minimum that Steve Jobs's new toy is going to cost me.

How come?

Simple. If I don't spend that $500, I'll invest it.

Historically, the stock market has produced average long-term returns of maybe 5% a year above inflation. (More on this below.)

At that rate, in 10 years' time my $500 will have grown to about $800. That's in today's dollars—after inflation. In 15 years it'll be about $1,000, and in 30 years, $2,000.

I figure I'll be retiring in about 30 years, which is when I'm going to need lots of capital. I can have the iPad now, or about $2,000 then.

Thanks, but I'll take the $2,000.

(If I were younger the iPad would cost me even more. If you're 30 or younger and you just bought one, congratulations: It probably cost you about $3,000.)

Yes, I typically do these mental calculations, at least in the back of my mind, for most things. I typically come back from the mall with no bags, gleefully clutching my future millions. (Warren Buffett, as Jason Zweig reminded us over the weekend, takes a similar view.)

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Culture/Society
KEYWORDS: apple
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To: wrench; HiTech RedNeck
In case you weren’t around then, we went to the moon, designed nuclear bombs, built the Hoover Dam, and thousands of other feats we can’t seem to figure out how to do today. And all these accomplishments were done without all these “look at me, I am important” toys.

After reading your "back in the good old days" screed on technology, I got the impression you are contacting us on FR via one of these beauties. (The computer, not the chick.)


41 posted on 03/31/2011 9:39:45 PM PDT by Lazlo in PA (Now living in a newly minted Red State.)
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To: buccaneer81

Not when you’re texting while driving and crash into someone. Some people can’t even handle just talking on it while driving.


42 posted on 03/31/2011 9:51:54 PM PDT by Secret Agent Man (I'd like to tell you, but then I'd have to kill you.)
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To: Lazlo in PA

Ha! It’s easy to knock old technology, but it kept a lot of people employed and got work done for those that used them! :)


43 posted on 03/31/2011 9:54:29 PM PDT by Secret Agent Man (I'd like to tell you, but then I'd have to kill you.)
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To: doc11355

Can the pad fit into the case face up?


44 posted on 03/31/2011 9:55:04 PM PDT by HiTech RedNeck (Hawk)
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To: harpu

This is one of the stupidest articles I’ve ever read! I’m buying as many things as I can now, because the coming hyper-inflation is wiping out my money holdings. I’m also investing, but I don’t know if the stock market will keep pace with inflation. Buy metals, tangible goods, arms, and property. By the way, I’m typing this on my iPad. Buy one now, it might cost $2000 next year after inflation starts roaring away.


45 posted on 03/31/2011 10:05:03 PM PDT by roadcat
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To: harpu

So under this logic, why would you buy anything more than the extreme minimum? EVERYTHING you buy translates into 4-5 times its ‘cost’ in several years, so shouldn’t you be waiting to buy, well, just about everything?


46 posted on 03/31/2011 10:10:16 PM PDT by Svartalfiar
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To: Secret Agent Man
No knock to old tech from me. I have a 1978 Panasonic Omnivision in my bar I use just for kicks. First VHS machine for the masses. It plays tapes so clear you would think they are DVD's. Cost someone a fortune when it was new. New car money. I just was poking fun at the posters cranky attitude toward the new stuff. One never knows if it a good tech or not for many years down the road where we can see what it did for us.

Mine has deluxe simulated woodgrain on the front.

47 posted on 03/31/2011 10:22:14 PM PDT by Lazlo in PA (Now living in a newly minted Red State.)
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To: Secret Agent Man
Not when you’re texting while driving and crash into someone. Some people can’t even handle just talking on it while driving.

Agree 100%. I was referring to incidents like when my wife's cousin had chest pain driving on the freeway from Cincinnati to Columbus. He was able to pull over, the Ohio Highway patrol and a squad got to him in ten minutes. Lifeflight flew him to Columbus where he had successful emergency bypass surgery.

48 posted on 03/31/2011 10:42:06 PM PDT by buccaneer81 (ECOMCON)
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To: roadcat
Buy one now, it might cost $2000 next year after inflation starts roaring away.

No kidding. If you're in the market for a new TV, get the $500 42" right now. It's going way up soon.

49 posted on 03/31/2011 10:45:02 PM PDT by buccaneer81 (ECOMCON)
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To: USNBandit
I bought an iPod touch for one of my kids and just got an iPad 2 for the others. My main purpose is so I can video chat with them when I'm on the road. That is worth way more than $2k to me.

Absolutely. The flip side of that is when my associates contact me at all hours to discuss a technical problem. No Mr. Project Leader we do not need to video conference from my dang hotel room at 2:00 in the morning! ... yes i know it is only 4:00 PM at the office....
50 posted on 03/31/2011 10:56:36 PM PDT by PA Engineer (Liberate America from the occupation media. There are Wars and Rumors of War.)
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To: wrench

Piffle

Sorry, dear luddite. The world is changing around you.


51 posted on 03/31/2011 11:07:39 PM PDT by Ramius (Personally, I give us... one chance in three. More tea?)
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To: tacticalogic

Have you used an iPad? If not, st_u...


52 posted on 04/01/2011 12:19:18 AM PDT by TXnMA (Remember the Alamo! Remember Goliad! REPEAT San Jacinto!!!)
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To: harpu

What a completely moronic piece. What the author said about iPad could be said about anything that costs anything.


53 posted on 04/01/2011 2:46:29 AM PDT by aruanan
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To: FightforFreedomCA
ok, I’ll ask, what’s a “glow-worm bubble-head”???

glow-worm = nuke

bubble-head = submariner

54 posted on 04/01/2011 3:17:02 AM PDT by tacticalogic
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To: harpu

This is such 1990’s thinking. By next Christmas, this guy’s investments probably won’t be worth jack, and he’ll be out of a job.


55 posted on 04/01/2011 3:30:02 AM PDT by backwoods-engineer (Any politician who holds that the state accords rights is an oathbreaker and an "enemy... domestic.")
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To: TXnMA
Have you used an iPad? If not, st_u...

I work at a fairly large financial institution. Some of our program developers write mobile apps for our customers. We have two of them (and a couple of Macs) we use to do QA testing on. I think they've been used more for playing Angry Birds than anything else.

56 posted on 04/01/2011 3:31:06 AM PDT by tacticalogic
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To: Breto
Boys have toys; men have tools, men have equipment.

Sorry little boy.

57 posted on 04/01/2011 3:41:05 AM PDT by metesky (My retirement fund is holding steady @ $.05 a can.)
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To: backwoods-engineer
By next Christmas, this guy’s investments probably won’t be worth jack, and he’ll be out of a job.

But by then that $500 iPad can probably be had for $150. The bad news may be that it could cost him 4-5 times that for a decent data plan for a year.

58 posted on 04/01/2011 3:47:31 AM PDT by tacticalogic
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To: tacticalogic

Of course, you could get the free Go To My PC app for iPad and use it that way. Or you could begin a campaign to convince the many Fortune 500 companies, the DOD, and medical professionals that they are wasting their time and money by extensively using iPads.


59 posted on 04/01/2011 4:29:31 AM PDT by PIF (They came for me and mine ... now it is your turn ...)
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To: tacticalogic

By next Christmas,... But by then that $500 iPad can probably be had for $150.

Or he could chose to use the $150 to buy a tankfull of gasoline...


60 posted on 04/01/2011 4:37:21 AM PDT by PIF (They came for me and mine ... now it is your turn ...)
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