INVEST LIKE IT’S 1999, {ACTUALLY 1980} – APPLE STOCK STANDS THE TEST OF TIME!
Disclaimer: Good Day, Readers. WealthBuildingPowers blog is a financial literacy/competency blog and does not provide specific investment recommendations.
APPLE STOCK – I ONLY WISH I PURCHASED IT EARLIER!
About 25 years ago, I purchased Apple stock. The reasons to buy Apple stock today are even better!
In the fast-paced world of technology and finance, few companies have stood the test of time like Apple. Apple has consistently been a lucrative long-term investment opportunity. Apple’s commitment to innovation, resilience, and a robust ecosystem has solidified its position as one of the best long-term investments even today.
APPLE SHARES GAINED 142,537% OVER PAST 42 YEARS!
Only a lucky/savvy few purchased Apple stock when it went public on December 12, 1980, at $22/share. Since the initial public offering, the company split its shares on five occasions, lowering Apple’s IPO price to $0.09821/share following the splits.
If you invested $10,000 into Apple at its IPO price, you would have purchased 454 shares. Factoring in the company’s five stock splits, these 454 shares would have increased to 101,696 shares today.
With Apple closing last week at $140.09, an initial $10,000 investment nearly 42 years ago would be worth about $14,246,593.
WARREN BUFFETT’S LARGEST HOLDING – APPLE
Apple designs consumer electronic devices, including iPhones, iPads, PCs, Apple Watch and AirPods. In addition, Apple offers services such as Apple Music, iCloud, Apple Care, Apple TV+, Apple Arcade, Apple Fitness, Apple Card, and Apple Pay, among others. Apple’s earnings reports refer to this as “robust recurring revenue streams” – I call it the take your customer’s money like clockwork feature!! While I pay for many of these services, as a stockholder, I LOVE THIS FEATURE. KA-CHING BABY
Apple’s products are distributed online, through company-owned stores, and third-party retailers. {You can sometimes get better prices on Apple products at retail stores such as Walmart, Costco, etc.}
There is no other technology company with comparable expertise across consumer hardware, software, services, and chip design. This integration allows Apple to build premium devices that command industry-leading selling prices and margins, most notably the firm’s crown jewel: the iPhone, with over 2.3 BILLION sold!
Apple has one of the best, maybe the best, economic moat (defenses to retain customers) that stems from the combination of switching costs, intangible assets, and network effects associated with its iOS ecosystem. The firm’s primary moat source is high customer switching costs based on various aspects of Apple’s hardware, software, and services. The smartphone is an essential device for users. We all turn that car around when we forget our phones!
How many of you own a Garmin GPS? I loved and depended on the Garmin! If you still depend on a Garmin, WHY? IPhone replaced cameras, MP3 players, portable game consoles, GPS, and the list keeps getting longer. The iPhone alerts 911 when we fall. It has an EKG function that warns you to get to the ER! The iPhone has saved lives!!!
Perhaps the Apple iPhone’s stickiest aspect is the iOS integration across multiple devices. Users of ancillary products (including the iPad, Mac, Watch, and AirPods) lose significant functionality when paired with a smartphone other than the iPhone. For example, an iMessage will appear on an iPhone, iPad, Mac, and Watch if a customer owns all. Wearables like AirPods and the Apple Watch have disrupted their predecessor industries and created another expensive hook to keep customers tied to Apple’s ecosystem. Apple’s active installed base (iPhone, Mac, and iPad) reached 1.8 billion at the end of 2021, up 9% from a year prior, highlighting individuals’ growing adoption of multiple iOS products.
In a 2021 Consumer Intelligence Research Partners survey, over 90% of U.S.-based iPhone users said they planned to remain loyal to future Apple devices. An October 2022 survey from 451 Research indicated iPhone customer satisfaction of 98%.
Apple rarely comes to market first with new products. The Mac, iPhone, iPad, Apple Watch, and AirPods were NOT the first to market but dominated the competition. We may see this again with the launch of the new AR/VR headsets (of which there are many existing products but none that have reached an inflection point of adoption).
TIM COOK’S LEADERSHIP
I pondered selling some of my Apple stock when Steve Jobs died in 2011. I was uncertain that Tim Cook had the necessary competencies to replace Steve Jobs. As it turned out, he did not. Time Cook works to his strengths. He is an operations genius, probably one of the best in the world. Tim retained Apple’s key leaders and SMEs, whose talents and competencies he needed. These people continued to design beautiful products that deliver what customers are unaware they need. He created new revenue streams with cloud storage, Apple TV, Apple Streaming, The App Store, Apple Pay, Apple Care, etc. Today, Apple’s subscriptions produce ~$80 BILLION annually, enough to be a Fortune 100 company. Apple essentially locks their cutometers in with super glue. Once you have thousands of photos on the cloud, fall in love with your iPad, iPhone Mac, Laptop, iWatch, and soon-to-be AR glasses you are not leaving! These products work more seamlessly than most marriages.
SOME APPLE KEY PERFORMANCE INDICATORS {MORNING STAR}
CONCLUSION – “YOU GOT TO KNOW WHEN TO HOLD EM; KNOW WHEN TO FOLD THEM; KNOW WHEN TO WALK AWAY; AND KNOW WHEN TO RUN”
Apple has been a “HOLD EM” stock.
Every company eventually becomes a “KNOW WHEN TO RUN.” Most great companies go through a cycle: GOOD TO GREAT TO DEAD: K-MART, SEARS, GENERAL ELECTRIC, KODAK, ENRON, etc. Eventually, great companies, like great sports players, lose their advantages, and it is time to trade or retire them! But I think that day for Apple is still a long time coming!
I still own shares in Apple. I sold some for my BEAUTIFUL AND BRILLIANT daughter’s college education and converted some into a three-unit apartment building. I am not buying more due to YUGEEEEE GAINS; it is >10% of my equities portfolio.
Remember, NEVER ACCEPT ANYONE’S BUT YOUR STOCK BUYING ADVICE!
The paths to financial freedom are UNLIMITED. CHOOSE YOUR OWN!
LET’S MAKE SOME MONEY – CRYPTOCURRENCY, ANYONE?
WHAT SUBJECTS DO YOU WANT TO READ NEXT? WHAT QUESTIONS CAN I ANSWER? UNTIL NEXT TIME!
YOUR GREATNESS IS NOT WHAT YOU HAVE; IT’S WHAT YOU GIVE! – SOME CHARITIES I SUPPORT
St Jude Hospital: The mission of St. Jude Children’s Research Hospital is to advance cures, and means of prevention, for pediatric catastrophic diseases through research and treatment. Consistent with the vision of our founder Danny Thomas, no child is denied treatment based on race, religion or a family’s ability to pay.https://www.stjude.org/
Wounded Warrior Project: An American charity and veterans service organization that offers a variety of programs, services and events for wounded veterans of the military https://www.woundedwarriorproject.org
Folds of Honor: Providing life-changing scholarships to the spouses and children of America’s fallen or disabled military. And now, our mission expands to the families of America’s first responders. On our watch, those who protect our freedoms and our families will know they are not forgotten. https://foldsofhonor.org
Wilson’s No-Kill Animal Shelter: A N0-Kill shelter that is a top-rated non-profit. They compassionatelycare for all their animals. https://wcnkas.org
Tunnel To Towers: Since 9/11, we have been helping America’s heroes by providing mortgage-free homes to Gold Star and fallen first responder families with young children and by building specially-adapted smart homes for catastrophically injured veterans and first responders. We are also committed to eradicating veteran homelessness and helping America to Never Forget September 11, 2001. https://dogood.t2t.org/give/320847/#!/donation/checkout
TRUST ME – YOU WILL LIKE THE BELOW BLOGS!
NEW SERIES – CRITICAL THINKING – BY DR. JAMES LEEMANN
USING CRITICAL THINKING IN PURSUIT OF POST-HIGH SCHOOL EDUCATION – CRITICAL THINKING SERIES – PART 2
CRITICAL THINKING – TOP TEN IN-DEMAND SKILLS FOR MANY EMPLOYERS! – CRITICAL THINKING PART 3: WHAT ARE THE UNIVERSAL STANDARDS OF THINKING?
CRITICAL THINKING SERIES PART 4: – A SELF ASSESSMENT OF YOUR LEVEL OF THINKING AND LEARNING
THINKING IS DRIVEN BY QUESTIONS, NOT ANSWERS – PART 5 CRITICAL THINKING SERIES: WHAT QUESTIONS DO THE BEST CRITICAL THINKERS ASK?
WHAT {DO YOU, AS A} CRITICAL THINKER, DO TO LEARN? – PART 6A – CRITICAL THINKING SERIES
WHAT DO YOU AS A CRITICAL THINKER DO TO LEARN – PART 6B – CRITICAL THINKING SERIES
WHAT HABITS DO CRITICAL THINKERS USE WHEN READING AND WRITING? PART 7A – CRITICAL THINKING SERIES
PART 7B: SUBSTANTIVE WRITING: WHAT HABITS DO CRITICAL THINKERS USE WHEN READING AND WRITING? – CRITICAL THINKING SERIES
WHAT DOES IT MEAN TO BE A FAIR-MINDED CRITICAL THINKER? – PART 8: CRITICAL THINKING SERIES
WHAT DOES IT TAKE TO DEAL WITH YOUR IRRATIONAL MIND? – CRITICAL THINKING SERIES – PART NINE (9)
The Oracle of Omaha’s Investment Strategy Explained
Bill Gates Says This Is the Most Important Thing He’s Learned from Warren Buffett. (Hint: It Has Nothing to Do with Money) Two billionaires are linked by one common denominator.
WARREN BUFFETT’S NET WORTH IS DRIVEN BY THESE IRONCLAD TEN RULES
Warren Buffett Says This 1 Simple Habit Separates Successful People From Everyone Else http://flip.it/_AzPx9
WARREN BUFFETT UTILIZED COMPOUND INTEREST TO BECOME THE 3RD RICHEST MAN ON THE PLANET!
WARREN BUFFETT UTILIZED COMPOUND INTEREST TO BECOME THE 3RD RICHEST MAN ON THE PLANET!
WANT TO LEARN HOW TO BECOME WEALTHY – READ “THE MILLIONAIRE NEXT DOOR”
THE ONE BOOK YOU SHOULD READ…….
COMPOUND INTEREST IS THE EASIEST WAY TO DOUBLE OR TRIPLE YOUR MONEY
COMPOUND INTEREST IS THE EASIEST WAY TO DOUBLE OR TRIPLE YOUR MONEY
INVESTING IN STOCKS IS COLOR BLIND – WHAT IS STOPPING YOU?
INVESTING IN STOCKS IS COLOR BLIND – WHAT IS STOPPING YOU?
FINANCIAL LITERACY IS JUST NOT THAT COMPLICATED – TRUST ME!
https://wealthbuildingpowers.com/2019/04/01/financial-literacy-is-just-not-that-complicated-trust-me/
To Join Wealth Building Powers BLOG:
PLEASE SIGN UP TO FOLLOW ME BY PROVIDING YOUR E-MAIL IN THE WORDPRESS BLOG PAGE SUBSCRIBE BOX!
Thank you to my followers and readers for your likes and comments. All comments, recommendations, and feedback are welcomed and utilized to improve this blog.
ABOUT ME
I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger with an NC. State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.
I left a corporate career because I desired to make a difference as a speaker and writer. I was blessed to be coached and mentored by strong women and men in my family and professional life. It is my time to serve and give back.
DISCLAIMER
I started my first business at ~13 years of age (a small but brilliantly created plant nursery). I am a successful investor in stocks, options, and real estate and am happy to share my finance and investment lessons. I am NOT a licensed financial advisor. Please do not construe my suggestions on this blog as recommendations for your situation. As an investor, you must establish your risk/loss tolerance. Investment in any asset involves risk, including complete loss.
Please seek your licensed CPA or fiduciary financial advisors for individual financial advice.
I write this weekly blog to make an impact by reaching an audience and demonstrating the need for financial literacy. I will help you get there.
