In early August the number of shares outstanding multiply by the stock price for Apple surpassed $ 1 trillion dollars. Not many companies are in that range and which is a cause for celebration. In an article by Mark Gurman of Bloomberg News, he looks back at Apple.
The company was founded in 1976 by Steve Jobs and the company has consistently reimagined what a computer can be and defined how humans interact with the devices and software. Names such iMac, iPod, iPhone and iPad are brands many of us have heard about and know. Layered on top of that business model there was unparalleled product innovation, marketing excellence, combined with an untouchable retail experience. Tony Fadell believes there is not another company that executes at Apple’s level of detail, at their fit and finish.
Although Apple is a successful company, it had it ups and downs and was close to bankruptcy in 1997. Since the iPhone was introduced in 2007, the phones capabilities started the smartphone revolution.
When Steve Jobs died in 2011, Apple was worth $350 billion, with Tim Cook at the head the company is now worth over $ 1 trillion and has $200 billion in the bank. Since 2012, Apple has bought back shares and given dividends of $275 billion and has more to go.
Linking to dividend paying stocks, similar to all companies, the growth rate was not always up, back in 1997 Apple was a speculative investment at best and had made and lost money. Things turned around and now similar to Warren Buffett, Apple should be in your portfolio either directly or indirectly through a tech fund or index tech fund.
There are more questions than answers, till the next time – to raising questions.