Although Apple products are expensive, I am a fan and loyal customer. The user experience is awesome and if you use these products for your work, it is an investment that will make you more productive, save your time and consequently, help you make more money. But do you know there are other ways Apple can make you money?
Of course, you can collect old Apple products and resell them a few years latter, when they are scarce enough. For example, the Apple-1 now worth hundreds of thousands of dollars. However, this is not what I am going to talk about in this post, even though I firmly believe that the iPod nano and the MacBook Pro 2012 will be worth a lot in a few years from now.
In this post, I will talk about investing in Apple stock. Nowadays, there are more and more trading platforms that allow anyone to buy and sell stocks. If you had invested $1,000 in Apple stock 10 years ago, it would be worth $11,000 today (that’s an 11-fold return on investment). And if you had invested the same amount 20 years ago, it would be worth $369,000 today (369X return)!
Is it too late to invest in Apple stock? I do not think so, and here are four reasons why (this is just the tip of the iceberg):
- AirPods alone could be a Fortune 500 company. Did you know that in 2020, the AirPods’ revenue was higher than the one of Adobe, Uber, Nvidia, or Twitter, to name a few?
- Apple is actively working on an electric car and if the Apple Car is a success, it will create a new revenue stream for the company.
- Tim Cook has worked hard to make Apple more socially and environmentally responsible. To be fair, from an ethical standpoint, I prefer to hold Apple stock rather than oil or Tobacco ones.
- The price to earnings ratio (P/E) of Apple is 28. That means that the ratio between the current share price to the company’s earnings is 28 or in other words, that the company would need 28 years to buy back its stock. Usually, a PER greater than 20 means that the action is overvalued (Tesla’s P/E is 352) and otherwise, it is undervalued. However, it also depends on the sector. On average, Apple’s P/E is lower than that of its competitors, which means that compared to its sector, Apple is not necessarily overvalued.
Furthermore, the yearly dividend yield of Apple stock is 0.60% (at the time of writing this story). That means that by just holding the stock, you will receive dividends that are much higher than what you could get on most savings account (the dividends are paid four times per year).
If you want to learn more about Apple, here are five books I highly recommend:
- Tim Cook: The Genius Who Took Apple to the Next Level
- Inside Apple: How America’s Most Admired — and Secretive — Company Really Works
- The Second Coming of Steve Jobs
- Steve Jobs
- iWoz: How I Invented the Personal Computer and Had Fun Along the Way
I hope the story was useful to you. If you enjoyed it, please leave a clap to support my work, it will propel other similar stories.
Disclaimer : I am not a financial advisor. The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. Furthermore, I only recommend products I use myself. This post may contain affiliate links that are at no additional cost to you, I may earn a small commission.
