Following The “Stars” of Investment Performance
August 16, 2018
Avoid meltdowns and stay focused
October 2, 2018
APPLE REVISITED
It’s official. Apple wins. The first Trillion Dollar company. And I am not surprised. In fact I predicted this years ago.
It is impossible to comprehend a Trillion dollars. A Trillion dollars is one thousand billion. Apple is the first company to hit this milestone. Its market capitalisation (number of issued shares multiplied by the share price) exceeded this level for the first time this month.
I am not at all surprised that Apple is worth a Trillion Dollars. What surprises is that it is not worth much more! The market values Apple at only 18 times earnings while it values Amazon at over 100 times earnings. And Amazon is the second most valuable company in the world – valued at 918 billion dollars. If Apple was valued like Amazon it would be worth over 5 billion dollars!
Why is Apple worth so much? Well lets’ look at its flagship device, the iPhone and particularly the latest top of the range phone, the iPhone X.
Apple explains that the iPhone X, uses an A 11 Bionic neural engine that performs up to 600 billion operations per second for real-time processing. The neural engine is designed for specific machine learning algorithms and enables face ID, Animoji and other features.
The latest news is that a new health – focussed chip will be engineered. The iPhone and Apple watch already include features that can track exercise and cardiac health and sleep quality and the company is working on a non-invasive blood-sugar monitor.
Apple also sells health monitoring equipment including a sleep monitor, a wireless blood pressure monitor, and a blood glucose monitoring kit. The health care market is huge.
In August 2011, I wrote an article titled: “For Apple the party is just getting started”. In this article I predicted that Apple would soon become the most valuable company in the world exceeding the market capitalisation of Exxon Mobil. Sales in China had grown by a factor of six times and management said, they were just getting started.
In March 2012, I penned an article titled “The greatest growth stock of all time”. Again I urged readers to buy. In May 2017 I again recommended Apple shares.
In September last year my article was titled: “The race to one Trillion dollars”.
In this article I state: “It is my strong belief that Apple is going to win this race and that it will be the first company to be worth One Trillion Dollars! Why not come along for the ride”.
And I don’t want to say: “I told you so!”
If you bought Apple shares in August 2011, when recommended you would now have increased your investment by a few hundred percent.
I also recommended Amazon shares when they were trading at $185. They are now trading at $1 900. That’s a return of 1000% in dollars!
Opening an overseas account with Fenestra is as easy as one, two, three. And you don’t need to be very rich.
With a list of challenges facing South Africa it is now critical for investors to have an international strategy.
If you are not happy with your portfolio performance or would like a second opinion, please do not hesitate to contact Fenestra for a free review of your portfolio.
