Tuesday, 5 April 2016

my iPhone secret experiment


I decided to carry out a secret experiment when the recent iPhone SE was announced.

I decided to take a leaf from all of these tax-free people and see how long it would take to use Apple shares to create a tax free gain sufficient to buy a new Apple iPhone 'for free'.

So I set up a watchlist on a W8-Ben compliant share trading platform. I added an amount of money equivalent to the maximum level of the current UK ISA, which for 2015/16 is GBP 15,240. In other words I put the virtual money into a virtual tax-free wrapper.

Then I set the watchlist to buy Apple shares at the announcement prevailing USD106.51 rate.

The I let it run until Apple's share price got over USD109.27, which would be the equivalent of a 2.59% gain, or expressed in GBP, a gain of £395 - i.e. the price of the phone.

The number was broken today and ran on to around USD109.93, briefly going over USD110. That shift moved the gain to be sufficient to buy the larger 64Gb iPhone.

Now, I did this as an experiment only, and I can say that it took 8 days to see the gain, based on what I perceived as Apple's comparatively low share price before the recent announcements.

Just an experiment and just for fun, of course.

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