Dividends and Apple, Amazon race toward $1 trillion valuations

A number of years ago, Warren Buffett talked about investing in the things you know. He did not say, be curious and learn about the things you do not know. Over the years, Mr. Buffett has changed and owns less than 10% of Apple.

In an article by Noel Randewich of Reuters Apple Inc. is on the verge of becoming the first $1 trillion publicly listed US company. However Amazon is not far behind. Alphabet and Microsoft are in the $700 billion range. The valuation is stock price multiplied by the number of shares outstanding.

Apple has a $229 billion annual revenue and with its money that was offshore of the US but the President reduced taxes to bring it back has used $100 billion to buy back stock. The company still has $146 billion to buy back stock or increase dividends or both which is why if you do not own Apple directly, you should own them in a etf or mutual fund.

Linking to dividend paying stocks, we are all bias and if you remember that you can move on to other investments. Each of us due to how we generate an income know more about one sector of the economy or another. Who the public companies are in the business and how they are doing from your perspective. It is important to learn about other sectors for there is always opportunity in the market you just have to see it by being curious you will begin to know where to look to connect the dots.

There are more questions than answers, till the next time – to raising questions.

 

 

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