Apple Inc.
I advised my client to invest in Apple Inc. stock because of the Company’s success stories. Globally, Apple Inc. is known for its thriving business, high stock prices, international customer loyalty and its commitment to innovation in the tech industry. The Company has undoubtedly grown to be one of the most profit-making companies in the world since it launched the iPod in 2007. As it stands now, Apple tops the technology industry and is also among the largest publicly traded companies globally. Apple’s market capitalization by December 2019, it passed the $1.3 trillion (Kolakowski, 2020). The Company’s annual revenue has been increasing since it was incorporated. Apple’s stock price has also been on the rise. Currently, it is 327.20, and its average stock price for the last 52 weeks is 226.59 (Macrotrends, 2020). The high stock price is contributed by product innovation, reinventing the current product line and expected brand loyalty. Investing in Apple Inc. is, therefore worth it because its stock is unfailing. It is also continuing to develop new products which are likely to steer its growth.
I initially looked at my client’s profile before making the decision. I wanted to get my client a company that can meet his needs. Understanding the client was necessary because some would prefer buying stocks and wait as value increases while other investors would buy stock and sell them quickly (Benzinga Editorial, 2012). Having considered my client’s needs, I preferred a medium risk investment which Apple Inc. provided. Apple’s going concern was not shaken because of its financial stability and market share.
My client operates a restaurant and intends to expand on it in future. The restaurant has steady cash flow and wants to invest in dividends. It was, therefore, necessary to select a company that does well in the stock market. Apple has invested in various products which have enabled it to grow revenues, expand margins and increase earnings (Ponzio, 2007). The return to shareholders has been fantastic with free cash flow to invest for growth. Shortly, the Company will continue growing in terms of revenue. The Company ensures that the shareholders get a maximum return for their investment. Apple’s stock is the best because the Company engages in a reasonably straightforward business model and is best in the breed due to its tremendously established brand (Benzinga Editorial, 2012). Apple’s stock is also easy to understand. The Company is a healthy past performer, and that can be used to gauge its future success. It is also a large-cap Company with strong financial muscles and prudent management that will make it survive for long and can pay out dividends.
My client can, therefore, invest his significant income from the restaurant in Apple’s stock for a long-term gain. The client will experience mild market fluctuation, which will be suitable for the investment instead of quick returns with a high level of market fluctuation (Fool, Tom & Gardner, 2018). Because the client does not care much about time, the investment will, therefore take time but with steady returns. The increase in the value of the returns over time will be quite logical for my client. For my client, I will buy stocks of the significant amount with high growth rate and value to ensure that the investment provides good returns.