How to buy Apple stock and capitalize on it in the long run? There is hardly a person who has not heard of Apple. Steve Jobs’s impressive biography has inspired millions of aspiring entrepreneurs. The story of the transformation of a bitten apple into the most recognizable logo in the world is comparable to the tale of Cinderella, only with an economic amendment. It is hard to believe that in the distant 80s the company’s shares were worth only 50 cents. Today, you can buy Apple shares at a price of at least $ 190-200, but this does not diminish the attractiveness of Apple securities in terms of earnings.
The strongest global brand Apple is a manufacturer of high-quality, reliable and simply fashionable computer equipment.
Smartphones, tablets, multimedia devices with the apple logo dream of getting millions of users. Consistently high financial performance of the company is the result of the work of hundreds of talented IT specialists, engineers, marketers, economists and designers.
The history of the company began in the early 70s of the last century in the garage of Steve Jobs’s parental home. Having experienced several ups and downs, Apple has become the undisputed leader in the computer technology market.
A publicly traded company, listed on the London NASDAQ stock exchange, is one of the best financial instruments for generating stable profits. The total number of issued shares reached 5,544.58 million. Market capitalization exceeded $ 1 trillion, more than its closest competitors, Google and Microsoft combined.
Regular release of updated versions of products to the market only increases financial performance, which is beneficial for the well-being of stockholders. The ability to generate powerful cash flows, which are mainly directed to buy back securities and pay dividends, is the main advantage of the company for an ordinary person who wants to join the world of big money. In the medium and long term, the company is expected to grow steadily due to a number of new services already presented to the public. This allows us to expect an increase in payments to shareholders.
Therefore, buying Apple shares is a rational and practical decision, with minimal risks.
Notable Apple Shareholders
Due to the securities of the apple corporation, famous people of the planet have multiplied their fortune several times.
Warren Buffett – investorfamous for his economic intuition, was among those who earned the most from the company’s market capitalization. The businessman’s history is indicative of the fact that he never invested in high technologies. The apple has become an exception to the rule. “It was my instinct to buy Apple shares,” Buffett explained in an interview with the BBC about the decision of his conglomerate Berkshire Hathaway to buy 75 million units at once. At the time of purchase in 2016, the value of one share was $ 99. In 2018, just after the market capitalization reached $ 1 trillion, the price was already $ 206. Warren Buffett has increased his fortune 2.5 times in less than 2 years.
Always think what you are doing. Buying shares is a risky business, even though some companies are stable.
Even more impressive earnings were received by the first shareholders of Apple. Mark Coughlin acquired the shares in 1980 at 51 cents per share. Since then, the price has increased 400 times. The same goes for the former Apple CEO John Scully – with the release of the iPhone, he began to increase his stake in the corporation and turned out to be a huge winner. Donald Trump has been actively investing in the company even before he came to the presidency of the United States.
- The Vanguard Group is a large investment company with 370 funds from all over the world. Owns 6.5% of the shares.
- State Street Global Advisors is an American asset management company. The share is 4.2%.
- FMR – holding the company manages the financial assets of investors from 100 countries of the world. Owns 3% of Apple shares.
- BlackRock Institutional Trust Company is the world’s leading investment company in terms of assets. Owns 2.8% of securities.
- Northern Trust Investments is a US company that provides financial services to investors from Europe, the Middle East and Asia. The share is 1.5%.
The list of the rich and famous is endless.
For the average person, information is proof that buying Apple stock is definitely a bargain.
Ways to buy Apple stocks in Russia
It has relatively recently become available for Russian entrepreneurs to buy Apple shares without resorting to complex manipulations and large investments.
There are several purchase options:
Broker Tinkoff is the easiest way to buy Apple shares without going into economic terms. All that is required is to open an investment account and give orders to a personal broker. On the official website, the user is provided with all the tools for successful trades – analytical news, charts, diagrams, ideas. For example, now you can buy shares under three investment programs:
- Towards Services – 15.8% Yield
- Return a trillion in a good way – earnings up to 14.9%
- Not smartphones alone – income 23.6%
All these are business ideas, the user can determine the optimal trading technique for himself and give the appropriate orders to the broker.
Through a broker on a foreign exchange
It involves searching for a broker who has access to the European and American stock exchanges. You can buy Apple shares only on large platforms: Nasdaq, Lse, Amex and Nyse. To do this, you need to find a broker with an SEC license.
Reliable and proven intermediary companies in Russia:
- VTB Capital;
You will need to open an investment account, a broker’s commission is also provided – 0.05% and payment for exchange services (different, depends on the company). To buy Apple shares, you need to register on the official website of the company, open an account and access the broker’s contacts.
Apple stock price
Today, the cost per share varies within $ 200.
Since the beginning of the year, it has grown by almost 20%. That is, those investors who bought shares in January have already received more than $ 40 profit from each. The forecasts given by the leading investment companies are mostly positive:
- JP Morgan – 228 $ by 31.12.2019
- Morgan Stanley – $ 211 by 03/01/2020
- Freedom Finance – $ 226 by 4.06.2020
- Raiffeisen Research – 250 $ by 1.05.2020
- Argus Research – 200 $ by 16.05.2020
- HSBC – $ 174 by 05/19/2020
The reliability of all analytical forecasts varies within 48-70%. As you can see, most investment houses give a favorable assessment of the future dynamics of shares. Therefore, there are at least 3 reasons why Apple securities can and should be bought:
- The company plans to launch an updated product on the market – AR glasses. The expected revenue is $ 13 billion. The forecast was based on the growth rates for the previous periods: 2016 – 150 thousand points sold, 2017 – 340 thousand, 2018 – more than 3 million. By 2022, the turnover will reach 38 million.
- Development of Apple Watch services – revenue from the sale of products marked “Eco” every year increases by an average of 27%. People want to stay healthy and young, so gadgets that help control healthy lifestyle parameters will invariably be in demand.
- Three new iPhone models are preparing for release. The flagship will have three rear cameras and an LCD screen. Apple fans are eagerly awaiting new products, and company sales – innovations will bring up to $ 20 billion in profit.
The rise in trade in China and the opening of manufacturing sites in India are further indications of an excellent outlook for stocks.
It is not in vain that analysts estimate the future value at $ 220 – all the conditions for this have been created.
How much can you earn?
If we take forecasts as a basis, then Apple shares will rise in price by at least 30% by the end of the year (which, in principle, is happening right now).
Based on the current rate ($ 190-195), it is easy to calculate that by January 1, 2020, the owners will be able to earn $ 20-25 per share if they buy Apple shares right now and sell them six months later.
Concerning dividends – the most common way of making money among big business players, then you should not count on getting super profits. It is more of a long-term investment, as in the case of Warren Buffett or John Scully. Apple introduced dividend payments in 1987 – then $ 0.005 per share was credited to investors’ accounts on a quarterly basis. In 1995, payments were frozen. The company’s management decided that the profit should be invested in the business and the circulation of securities. The payment of dividends was resumed only in 2012 and by now it has the following characteristics:
- the highest income – $ 3 per share received by the owners in 2013-2014;
- in 2017 – dividends amounted to 63 cents;
- the average is 38 cents;
- currently 70 cents.
What does this mean for someone looking to buy Apple stock? To earn $ 300 ($ 100 per month) per quarter, you will need to purchase a package of 500 securities. At today’s exchange rate, it is $ 96,000.
If you have a similar amount, then passive income is almost guaranteed (80%). But there is a risk that dividends will become half as much, then the investor simply goes to zero.
Therefore, it is possible for businessmen with large and, most importantly, free capital to consider dividends from Apple as earnings. A tangible profit starts from investments of $ 1-1.5 million. The optimal way is income from exchange rate differences.
Stable growth, leadership, excellent financial results, release of new products – there are enough pluses in Apple to think about how to buy Apple shares.
But risks are also present, and everyone, even those who are far from investing in securities, can notice them:
- China is Apple’s main headache. Sales in the Middle Kingdom have fallen by almost 13% since the beginning of the year. For the company, the Asian market is of critical importance and if the trend continues, losses cannot be avoided.
- Korea. It is difficult to keep up with Samsung – the brand is not only stepping on its heels, but also confidently ahead in some indicators.
- Repurchase of own shares. The top priority for management is still investing profit in securities trading. As economic practice shows, companies remain at a loss if a lot of effort is spent on buying back their own shares.
- Rapid growth has an end. Now Apple is overvalued in many respects, if growth continues further, then Wall Street may well decide to reduce the excitement, which will inevitably affect the value of shares.
- Expectations. Finally, users may become frustrated with a new product that has a lot of bets on. Moreover, there is a Korean Samsung and a Chinese Huawei – there is something to compare with.
In fairness, it should be said that risk is an integral part of any investment, including investing in stocks.
Buying Apple shares is quite an interesting experiment, given the history of the company and individual investors. If instead of buying a brand new iPhone or iPad in 2011 for $ 1,200 (on average), you bought Apple’s securities at $ 34 (approximately 35 shares), then the profit would be about $ 6,000. And this happens every year – the price of securities is constantly growing. Therefore, as a long-term investment, Apple is one of the best financial instruments. Russian entrepreneurs will not have any difficulties in purchasing. The main thing is to contact a reliable company (fund, broker) so as not to lose your hard-earned money after the first transaction. Earning money becomes a matter of time and trading technique.
Tell us in the comments what you think about Apple as a way to make money. Is it better to buy a gadget or invest in your future well-being?