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.
Many investors – both big time investors and the average investor – have invested a portion of their money into Apple stock.
Table of Contents
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. (trading ticker: 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. The average trading price in the last six month’s is $160 a share. 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 shares or any other company’s stock will result in financial gains.
Choose a Financial Advisor or Open a Brokerage Account
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.
Here are other brokers to consider:
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.
What to Know about Apple Inc.
Like mentioned above, the first thing to do is RESEARCH. We have compiled a bit of Apple Stock’s and Apple Inc.’s history that get you started.
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.
Have you ever owned shares of Apple Inc. stock?