Since The iPhone Launched, Apple Has Made As Much As Microsoft and Alphabets Combined

The Atlas ^

[Enlightened1]

Cumulative profits since introduction of iPhone

[Wuli]

Now would be the time to sell Apple.

Others have reached comparative standings as Apple has today, but its annual stock value appreciation has likely reached or is reaching a plateau. Yes, it is still a “hold” but should less often be a “buy” if total portfolio appreciation for the next decade or longer is sought.

[Enlightened1]

The new iPhone is about to roll out, the economy is growing and we are going to be back in the holidays soon. I would say buy.

[wyowolf]

Dang I wonder what the stock would be worth if you bought it in 2008?

[Steely Tom]

And yet somehow no lefties seem to feel Apple’s “windfall profits” are a bad thing.

[Steely Tom]

Well, just to pick a day at random, AAPL closed at $23.01 on 18 April, 2008.

AAPL closing price on Friday 4 August 2017 (last Friday) was $156.39, which is a factor of X 6.8, or 580%, over a period of 3395 days, which is 9.30 years.

This gives a compound annual growth rate (CAGR) of 22.9%, which is very, very good.

Over the same period, the DJIA advanced at an annual rate of 5.82%

[Steely Tom]

Oh — I should have added — AAPL prices I quoted are adjusted for the 7:1 split that happened on 9 June 2014.

[fella]

25 dollars for parts and slave labor. Another 5 dollars for packaging and shipping. 7 more dollars for R&D. Two dollars for advertising. Plus taxes. 23 cents for software.

And they sell for how much?

[hanamizu]

It’s even better since the stock split 7:1 in 2014.

[cmsgop]

I bought at $22 and I still have it

[gibsonguy]

I will never forget Steve Balmer, the head of MCSFT, predicting a total flop and a money loser when Apple announced it.

[Wuli]

Again, I think buy or sell depends - to me - on positioning a portfolio for a decade ahead at least, not next quarter or even a couple years.

Here are some Apple P/E ratio estimates going out to 2019. While those ratios are not in the bubble range of the dot.com and high-tech bubbles, their lowered expectations reflect a valuation level to the stock market similar to GE, IBM and Microsoft each once had in their day, and the kind of valuation and P/E plateau they each hit as well. It’s the old story of how much higher can you get once you get to that kind of plateau. History says: not much.

http://www.nasdaq.com/symbol/aapl/pe-ratio

I would not buy Apple today, if growth in the total portfolio valuation a decade out was the priority. Hold for good stable value, O.K., but not buy to maximize growth. Buy low and sell high.

[doorgunner69]

How, oh how have I avoided ever buying anything Apple makes?

From my limited exposure to their stuff, I never will.

[PIF]

Perhaps, however that same advise has been issued many times in the past for variety of reason including hitting all time highs. AAPL pays a hefty dividend and is worth hanging onto for just that reason.

[Wuli]

I am not as down on Apple as you seem to think. I just rate it a hold - good value to keep if you got it, to have some stability in the portfolio (the way folks use to own AT&T and Exxon through many different economic cycles - good, strong to hold onto, if you got it).

But for money available to buy more stocks for the portfolio, I’m not looking for old reliable, I’m looking for what has - more than Apple I believe - greater % growth in its share price. I wouldn’t sell Apple and lose its dividend, but I wouldn’t buy more Apple with those dividends.

[minnesota_bound]

Apple will need to come up with something new. I can but phones and tablets with android for much cheaper. Samsung and others have competition from Chinese companies.