The world’s largest
corporation - based on market cap today - is worth about $600B. That’s 600 billion,
with a B.
B... more or less also the grade one could assign to the corporation’s new product-launch-performance, over the last few years.
But now, with less than 24 hours to go until their major
media event, Apple has begun redirecting its U.S. home web page to Apple.com/live, where they are displaying a countdown clock to tomorrow's big event.
The buzz created by Apple, and spread by a loyal
chorus of fan boys and girls, is deafening!
Everyone suggests that Apple has
something major in the works for tomorrow. Their media events are always major,
well-scripted and choreographed events, and this one promises to be even
bigger, greater, with more substance than other, recent ones.
You were able to buy $AAPL stock around the end
of 2004 for about $5. If you did, your investment would have returned a staggering 20-fold
increase based on the stock price alone. That's including the recent 7:1 split,
but excluding reinvested dividends.
Not a bad return on investment in a company named
after one of its vegetarian founders’ favorite fruits - Apple - and his
preferred variety of that fruit, the McIntosh.
Today, with the stock trading at around $100, it’s
almost inconceivable that over the next decade one share may grow, once more,
from $100 to $2,000. But, that is what transpired over the last decade.
And, people will keep asking: "Can the relatively
new front man finally step out of the large shadow and footprints left by the genius predecessor?"
About 7,500 apple varieties are grown
throughout the world, and there are about 7.5 billion people on the planet. And
Apple is making almost $7,500 per second in revenue. That’s already a
mouth-full of 7.5-somethings. Given more time... I could probably source more
useless 7.5-something trivia…
If the world’s population also grew 20-fold
over the next decade, that would probably be really scary! For now, I'd rather
put my faith in the behemoth known as Apple, as a predictable and sound - albeit sometimes consumer boring and frustrating - investment opportunity.
Heck… in the 10 minutes it took to write this
post, Apple collected another $4,000,000+ in revenue! With a price/earnings
(P/E) ratio in the mid-teens, and a dividend yield of 2.35%, it’s almost
surprising that Apple is only 62% institutionally owned. Just these high-level
indicators alone already make Apple stock a good investment prospect for your own
portfolio, assuming you don't already own it.
And chances are, you already own the stock
anyway, via some ETF or mutual fund that you have invested retirement money
into. You are saving for your retirement, right?
The next time you think of buying some Apple
gizmo, and balk at the high price, consider that the ever-increasing, higher price
for their quality products on offer, will also drive the ever-increasing return
on your investment, longer term.
It's kinda like the gas price at the pump… paying
too much? Well then, consider investing in some energy stocks! The latter are
all good longer-term investments as well, paying handsome quarterly dividends to their
shareholders, available for reinvestment.
Many investors consider Apple to be more a
value play than a growth investment, but the history of the stock's performance
demonstrates the opposite. Either way, I'll hold my long $AAPL position
regardless of what analysts, TV hosts and investment bankers may say as they flip-flop through their boring existences.
I’m no Warren Buffett, that's for sure... but I still know a good buffet
with shiny apples, when I see one…
Disclosure: long $AAPL
Disclosure: long $AAPL
