As you probably already know, Apple Inc. is the technology company behind some of the world’s most famous electronic gadgets such as the iPhone and iPad.
Nearly everywhere you look you can see someone searching for something on an Apple product. A well-known product such as the Apple iPhone often makes for a well-known investment opportunity as well.
Many investors – both big time investors and the average investor – have invested a portion of their money into Apple stock.
Apple stock shares purchased ten years ago or more are currently making those stock owners a lot of money, thanks to a great bull market over the last few years and a few well-timed stock splits.
Buy Apple Stock and Become a Millionaire?
If you purchased your stock shares in Apple when the company first went public, you could be a millionaire by now, depending on how many shares you bought at the time.
Technology giant Apple Inc. (stock symbol AAPL) first went public on December 12, 1980. Its initial offering stock shares sold for $22 per share.
Over the last nearly forty years, Apple’s stock value has seen its ups and downs, largely due to normal (and some not so normal) market fluctuations, and also due to some company struggles.
In fact, ten years ago in September 2007, the stock was valued at just under $20 per share. Today it’s trading for around $160 a share, but because the stock did a 7 to 1 split in 2014, people who owned a $20 share in 2007 now own seven $160 shares.
That’s a massive increase in value in just a ten-year period.
In other words, history shows Apple stocks could be a great investment. Now, I have to preface that by saying that all stock purchases –no matter what the company – carry the risk of “losing it all”.
There’s no guarantee that your purchase of Apple’s stock or any other company’s stock will result in financial gains.
However, big shot investors with serious investing success under their belts often tout purchasing and holding blue-chip stocks as the way to go for long term investing success.
Blue-chip stocks are stock shares in companies that have a long, proven history of staying power and steady growth. Here is what Wikipedia says regarding blue-chip stocks:
“A blue-chip is stock in a corporation with a national reputation for quality, reliability, and the ability to operate profitably in good times and bad.”
Apple certainly fits that description. With a forty-year history under its belt, Apple has proven that it has staying power in the technology world.
Here is some history on how Apple Corporation came to be one of the most well-known technology companies on the face of the earth.
The History of Apple
Apple opened its doors in April of 1976, the creation of Steve Wozniak and Steve Jobs who based the company’s first “headquarters” out of Jobs’ parents’ garage.
They officially incorporated the company in January of 1977, likely having little idea of the massive global impact their creation would make.
Jobs and Wozniak were truly visionaries as they worked to create the first Apple personal home-based computer, Apple I, in the mid-1970’s.
Their first official version of the scrappy looking computer was nothing more than an assembled circuit board. The owner of this Apple I spiffed it up by adding a case and a keyboard (insert image here).
Roughly 200 of the Apple I’s were built and sold, butJobs and Wozniak had a feeling that the success of Apple I was just the beginning.
In fact, by the time the company incorporated in January of 1977, Steve Wozniak was already working on the design for Apple II with proceeds made from the first model.
The Apple II was a vastly different machine than the Apple I, featuring a completely redesigned TV interface that had the ability to hold memory.
Jobs insisted Apple II come to owners completely assembled and ready to run as soon as it was removed from the box, and the new Apple II was rolled out in April of 1977.
The Apple II personal computer idea took off and by the 1980’s millions of the home computers were sold and “regular” people everywhere were testing the idea of having their own personal computers at their fingertips.
In 1984 Apple introduced the first Macintosh computer. The Macintosh PC was the first personal computer to be sold without a programming language.
Apple introduced the first Mac computer to the world by airing a 1.5 million dollar commercial during the 28th Super Bowl on January 22, 1984.
To this day that commercial is touted as one of the greatest of all time and is considered a pivotal move to Apple’s success.
The rest, as they say, is history. Apple became one of the world leading technology innovators and continues to be a top selling electronics company to this day.
Many investors continue to buy Apple stock as a part of their balanced portfolios, banking on the hope that Apple will continue to change the technological world with innovative inventions.
Will you be an investor that takes a chance on Apple’s continued success by purchasing shares of Apple stock?
How to Buy Apple Stock
Buying stock in Apple or any other company can be done in a number of ways. You can buy stock by partnering with a certified financial advisor or stock broker, however in doing so you can expect to pay some pretty high fees.
A full-service commission from a financial advisor or broker could mean you could pay anywhere between $30 and $150 or more to buy stock shares in Apple or another company.
Luckily, today’s financial world includes a list of banks and investment firms who allow clients to do what’s called self-directed management of their stock and other investment funds.
These self-directed investment accounts are managed by robo-advisors that have little human interaction with clients.
Self-directed management of your investments means you don’t have to pay an advisor or broker to buy stock shares for you, but instead can initiate the buy or sell order on your own, and the robo-advisor does the work for you.
Buying stocks through self-directed investment accounts is much more affordable than buying stocks through a traditional broker or financial advisor.
For instance, Ally Invest, which is owned by Ally Bank, allows investor members with self-directed investment accounts to conduct stock and ETF trades for only $4.95 per trade – a much lower fee than you would pay via a traditional stock broker.
If you have an investment balance of more than $10,000 with Ally and conduct more than thirty trades per quarter, you’ll only be charged $3.95 for stock and ETF trades.
This is a much lower commission rate than what you would pay by using a traditional financial advisor or stock broker, and lower fees means more money in your investment account for growing wealth.
Why Fees Matter
Investment management fees affect your ability to grow wealth in two ways. First, because investment fees for managed portfolios are often determined on a percentage basis, you will pay higher fees as your investment grows.
Let’s say you’re being charged a one percent fee on your investment account. If you start your account out with $10,000 you’ll pay an investment fee of $100 that first year.
However, by the time your portfolio balance has grown to $100,000 you will be paying an annual fee of $1,000.
The second way fees affect your ability to grow wealth is because of opportunity cost. Opportunity cost is the loss of potential gains when you choose one option over another.
For example, when you pay $1,000 in annual fees to manage your $100,000 investment account, you’ve just lost the ability to earn more money on that $1,000.
This is why knowing what types of fees you are paying – both for purchasing individual stock shares and for the annual management of your investment account by an investment firm – is so vital.
When you know what types of fees you are paying and how much those fees add up to, you can work to minimize the fees you pay by taking advantage of self-directed investment accounts like those that Ally Bank offers.
If you know that you want to buy shares of a specific stock, there is little value in hiring a broker directly (and paying astronomical fees to do so) to have you do that when the option of self-directed trading is available for a much more reasonable fee.
The next question is “Why could Apple stock be a good purchase option for my investment portfolio?”
While there are no guarantees that any company’s stock share purchase will result in positive returns, I can give you some information on what Apple stock has done in the past.
The History of Apple Stock
Apple Inc.’s stock history is a story for the record books. I mentioned earlier that the IPO for Apple was $22 per share, and I also mentioned that the stock today is trading at around $160 per share, but that’s not the whole story.
Thanks to several stock splits over the history of the company (four to be exact), the adjusted IPO for Apple stock today is just $0.39 per share.
The Motley Fool reports that since Apple stock went public it has appreciated more than 21,000 percent.
What’s even more interesting is that Apple’s enormous success and wonderfully profitable stock performance is said to have been catapulted largely by three of its products:
- The iMac
- The iPod
- The iPhone
Since the development of these three revolutionary products, Apple has gone from an oft-struggling tech company to a worldwide name selling hundreds of billions of dollars worth of products each year – and Apple is showing no signs of slowing down.
Year after year Apple’s iPhone is among the top-selling smartphones in the world, usually taking the title for THE top selling smartphone of the year.
And Apple continues to refine and improve the iPhone, releasing newer and smarter versions of it on a regular basis.
This has been good news for owners of Apple stock shares. With the four stock splits the company has initiated since its IPO (three 2 to 1 splits and the 2014 7 to 1 split) Apple stock shares have helped turn many people of average wealth into millionaires.
Apple Inc. Today
Today Apple Inc. has nearly 500 retail store locations along with its corporate headquarters and employs over 115,000 people.
In 2016, the company boasted over $216 billion in revenue. With tried and true products such as the iPhone, the iPad, and the Mac Book, Apple still continues to woo its loyal customers, many of whom are seriously brand loyal and won’t buy anything but Apple products.
The iPhone, first introduced in 2007, was one of the first smartphones to use a multi-touch interface and is still one of the most popular smartphones on the market today, with over 200 million units being sold in 2016 alone.
It’s not likely that Apple and its’ team’s penchant for creating visionary, state-of-the-art electronic devices is going anywhere soon.
Like many of the blue chip companies before it; Coca-Cola, McDonald’s, Amazon, IBM and more, Apple is likely here to stay.
If you’re interested in working to potentially grow your wealth through blue-chip stock purchases such as Apple, use an affordable investment firm like Ally Invest that allows you to have a self-directed investment account and get your Apple Stock today.
Shares in blue-chip companies that have a long-held history of being able to keep – and grow – its client base through continued creation of products that make life better for others are often a good option for investors who are interested in long term growth of their wealth.
While no investment comes with a guarantee, stock shares of companies that have shown staying power over the course of several decades definitely give prospective shareholders some peace of mind about a continued increase in value.
Do you purchase blue chip stock shares for your investment portfolio? Have you ever owned shares of Apple Inc. stock?