A $10, 000 investment in Dell at its 1988 initial public offering would have yielded a fortune of ~$6 million at the stock’s peak.

Heather Simmons
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The price of a stock is not necessarily the best indicator of how valuable it is. However, it can be an important factor in determining how much money you could gain if the company succeeds. When you buy a stock, you don’t just pay for the stock itself. You also pay for the idea that the company has and the success that those ideas will bring.

If those ideas turn out to be valuable, then your investment will be worth a lot more than it was originally. When you buy a stock at its initial public offering price, it is like buying shares of an idea without having any idea what that idea is. At its initial price, Dell looked like a risky investment, but it turned out to be one of the most successful companies of all time.

Source: Reinventing Dell

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