![]() ![]() But in other cases, the price may have posted exponential gains purely on speculation, or due to other reasons such as takeover rumors or a short squeeze. In some cases, the price gains may be justified by the company’s underlying fundamentals (for example, its sales and/or earnings may be growing faster than investors’ expectations). When the price rises dramatically: Selling a stock merely because it has risen dramatically in price isn’t always the best course of action.And to avoid making the same mistake in the future, resist the temptation to chase hot stocks that are running on fumes, as they may burn you financially. The best course of action in this case is to sell the stock, even if it means taking a small loss on the trade. But as soon as you do so, you realize that you’ve probably made a mistake. You’ve watched this stock-or more likely, a meme stock-make phenomenal gains on a daily basis, so you finally decide to suspend your disbelief and recklessly put in a sizable buy order for the stock. When the initial buying decision was a mistake: Most experienced investors may have encountered this situation at some point.And with that, it's definitely not too late to invest in the stock for the long term. The company's history of consistent stock growth and immense brand loyalty will likely keep it growing for decades. The new service has been a hit so far, with consumers depositing nearly $1 billion into its accounts within the first four days.Īpple has become a behemoth in the tech market, allowing it to expand into a wide variety of industries, which diversified and strengthened its business. After launching a credit card in 2019 and a buy now, pay later program earlier this year, the company recently unveiled its first savings accounts. If the company's past success entering new markets is anything to go by, it could soon dethrone companies like Meta Platforms and Sony Group, which are currently leading this quickly expanding $31 billion industry.Īpple's potent brand also boosted its efforts in the world of finance and digital services. As a result, the company can charge a premium for its products, which partly safeguards it against short-term market headwinds.Īccording to a Bloomberg report, Apple is gearing up to enter the VR/AR market this June with the release of a new headset. It has a leading market share in tablets, smartwatches, headphones, and smartphones despite other tech companies leading those industries before Apple entered them. ![]() ![]() This immense loyalty gave the company a massive advantage when entering new markets. Last month, Buffett said, "If someone offered you $10,000 to never buy an iPhone again, you wouldn't take it." While surprising, the statement rings true for many consumers who would willingly switch brands of other devices before straying from Apple's smartphones. ![]() Meanwhile, Buffett's company is continuing to grow its 5.8% stake in the MacBook maker, buying more stock as recently as this past February.Īpple's market dominance led to consistent and reliable growth over the long term, solidifying its position as a compelling stock. Since that investment in 2016, Apple shares climbed 547%. Moreover, consistent growth has led Warren Buffett's holding company Berkshire Hathaway to make Apple over 45% of its portfolio. 2, with investors trusting its long-term growth.Īnd when the company's stock does dip, it's rarely down for long, with Wall Street rushing to take advantage of the buying opportunity. However, its stock has still risen about 12% since its earnings were posted on Feb. The reliable growth has given it a reputation for being one of the safest investments around, with exceptionally low volatility.įor instance, in the first quarter of 2023, the company reported its first quarterly revenue decline in years and missed analyst expectations by $4.5 billion. A history of consistent gainsĪpple shares climbed about 282% in the last five years, and 960% over the last decade. Here's why it's not too late to buy Apple stock. ![]()
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