STOCK PICK: An Icon For Creating An Unbreakable Brand Name
This company had over 6x growth in the last 10 years and is known as the world's most valuable name.
Had you invested just $1,000 into this company back on its IPO date on December 12, 1980, your total investment today would be worth over $1.3 million! This company was the first $700 billion company in 2015 and is now worth more than $2.7 trillion today and growing (as of the time of this writing). Our exclusive stock pick today is none other than Apple Inc (NASDAQ: AAPL) - a company whose brand is considered the most valuable name on earth.
Company Overview
Apple Inc. is in the business of designing, manufacturing, and marketing personal We'reters and devices such as smartphones, personal computers, tablets, wearable technology, and related accessories. They are a global company whose name is recognized as the most valuable brand on earth. Apple’s products include:
Apple's Products:
iPhone
iPad
MacBook laptops
Apple Watch
AirPods
Apple TV
iPod
Beats products
HomePod
Apple Subscription Services:
Apple Music
Apple Arcade
Apple News+
Apple TV+
The App Store
Apple Fitness+
Apple Card
Apple Pay
Chances are, almost anyone reading this will have used at least one of Apple’s products or subscriptions. It’s no wonder that Apple was the world’s first company to reach a $1 Trillion market cap {{https://www.cbsnews.com/news/apple-becomes-first-1-trillion-company-market-value-market-capitalization/}} followed by being the world’s first company to reach a $2 Trillion market cap. {{https://www.forbes.com/sites/sergeiklebnikov/2020/08/19/apple-becomes-first-us-company-worth-more-than-2-trillion/?sh=4f9f1e0266e6}} Today, Apple is worth more than $2.7 trillion and growing. That’s a market cap value that’s 13 figures long - $2,700,000,000,000.
Leadership
We’re all familiar with Steve Jobs, founder of Apple, who has since passed away. He left behind his amazing company in the hands of Tim Cook, current CEO of Apple who has since been credited with being the keystone to taking Apple to become the first $1 trillion company. In fact, Apple was worth roughly $364 billion since Tim Cook took over as CEO. This means he has nearly sextupled (6x) the company’s size. Before joining Apple in 1998, Cook played important roles at Compaq and IBM.
Mission & Vision
In Apple's own words: “Apple strives to bring the best personal computing experience to students, educators, creative professionals, and consumers around the world through its innovative hardware, software, and internet offerings.”
Can Apple become the world's first $10 trillion company? I’m betting on it!
Why Invest In Apple?
The real question we should be asking is why not invest in Apple? The list of reasons to invest in Apple is larger than I can fit into this article. Among some of the biggest reasons are the following.
A Financial Powerhouse
Apple’s financials are in pristine condition. They currently have $55.9 billion in cash, $385 billion in revenue, and over $80 billion in levered free cash flow (money left over after expenses). Furthermore on Apple's financials:
Return on Equity (ttm): 145.6%
Profit Margin: 24.49%
Operating Margin (ttm): 29.16%
Gross Profit (ttm): $170.78B
Apple's current financial status allows them to weather almost any storm and have money leftover to innovate and put into research and development - both are essential to continue growing and expanding products.
A Laundry List of Industry Moats
Perhaps the most brilliant marketing tactic that I’ve ever seen lies with a strategy Apple used and has done wonders. When you see someone wearing a pair of white earbuds, what do you immediately think? That’s right, Apple. And that’s just the start of how Apple built a plethora of industry moats such as a powerful and recognizable brand. Here is a list of Apple's industry moats:
Powerful Brand
Cult Like Following
Innovative
Customer First Centered
50% of Smart Phone Market Share
Growing Market Share For Other Products
Diversified Product Markets
Consumer Trust
My Opinion
I currently use an iPhone, I wear AirPods, I LOVE my Apple Watch, and I’m writing this on a MacBook Pro. I subscribe to Apple News+ and many other of Apple’s services. I’m betting that a lot of you reading this could say the same. That fact alone is a powerful indicator of a great company and a potential market-beating investment.