With Apple (Nasdaq: AAPL) recently crushing the trillion dollar market cap milestone, some investors may be wondering if it is too late to invest in Apple in 2018…
It’s a legitimate question.
Since passing $1 trillion in market capitalization around 30 days ago, Apple stock has increased in value around 10% since the start of the beginning of August 2018 alone.
So… Is It Too Late To Invest In Apple In 2018?
Not by a longshot.
Since I’m not a financial advisor, and don’t play one on the Internet, to answer this question I will simply defer to Warren Buffett.
Mr. Buffett is the founder of Berkshire Hathaway and is almost universally regarded as one of the shrewdest American “value investors” in history.
Over the past few years, Berkshire Hathaway has been building a massive stake in Apple. Mr. Buffett’s company now owns around 5% of the iPhone maker… He has done extremely well with his investment thus far.
So, with Apple stock up over 30% this year alone does Warren Buffett believe it’s too late to invest in Apple in 2018?
Indeed, with a P/E ratio of less than 20, Apple is still considered a value investment… At least when compared to other Silicon Valley tech companies stocks that have been soaring of late.
But you don’t have to just take Mr. Buffett’s word for it… In addition to him, at least three other experienced value investors share his view that Apple is an excellent long-term investment. This is because of the various huge markets the company is getting into.
This article goes into their thinking in detail. It describes the huge markets that Apple is getting into where CEO Tim Cook believes that the company can add meaningful value.
The four markets are massive… They essentially dwarf the size of the smartphone market itself (where iPhone is the king of profitability). The markets Apple is getting into are:
- Digital Subscription Services
- Self-Driving Cars
- Financial Services
Apple’s digital “services” business alone is already approaching Facebook in terms of revenue.
If the “Oracle of Omaha” believes it’s still a great time to buy Apple, to me this means it’s not too late.