When it comes to revolutionizing everyday living, Apple is an industry leader. Ever since its founding, it has been changing the way we communicate, collaborate, and create through its range of innovative and reliable products. Every product launch has tech geeks buzzing and consumers flocking to their local Apple Store to purchase the latest iPhone or iMac. It is for this reason that the brand remains a treasure trove for investors wanting to get a piece of the action. Hitting a market value of roughly $2 trillion last August, the brand is expected to fare even better than the tech industry’s averages.
In terms of revenue, Apple stock’s forecasted growth is at 12.85% per year. With such stellar numbers in spite of the COVID-19 pandemic, Apple shares are definitely a must buy for investors. However, just like in any other investment option, buying Apple shares requires a certain amount of caution. It’s not for first-time investors, but if you get to learn the proper way of formulating your strategy and managing your portfolio, you can enjoy steady returns. Check out this guide to help you get started in buying Apple shares:
1. Do your research
As an investor, you wouldn’t want to dive into unfamiliar territory and hope for the best. You need to look at the bigger picture and focus on the details that will influence Apple stock futures. You need to get as much information as possible before you build your approach. For this, you may have to track the company’s growth over a ten-year period. Moreover, you will need to check for sales slumps and determine the factors that contributed to them. The key here is to check for historical trends through quarterly and annual reports, which are accessible through Apple’s Investor Relations website.
2. Keep tabs on the competition
As you continue to evaluate the company’s recent and past performance, you will also need to check how Apple fares against its closest competitors. This provides you an easier way to gauge the company’s strengths and weaknesses. You can also assess the way it responds to its competitors and how it develops strategies to counter their efforts.
3. Know how much to invest
After you have done your homework and monitored Apple’s competitors, you will need to determine how much money you can funnel into the company. This is a question of how much risk you can tolerate. Most Apple investors would choose to buy and hold for three to five years. This is the safest route to take as it minimizes risk and provides a great hedge against volatility.
4. Work with a broker
Now that you’re intent on buying Apple stocks, you can proceed with opening a brokerage account and work with a reliable broker. Brokerages such as eToro and Trading212 are just two of the most used by Apple investors.
It’s always a great time to buy Apple stock. As long as you develop a resilient portfolio and stay abreast of emerging tech trends, your success as an Apple investor is as good as secured.