Apple

This time last year as Covid 19 was breaking news the Apple Inc share price was $80. Following a third lockdown the share price today is $134 or in one year the value has risen 70%. That is by any means a fabulous return. Though I have an Apple I phone, Apple I pad and Apple MacBook Air I don’t own a single share and may be the dumbest guy on the block. It’s yet another lesson if you like the product buy the shares in the Company. This is a core ( yes a pun ) principle of Investing, yet dumbo didn’t. OK I won’t be too hard on myself but a 70% uptick in one year is really good. Buy the Apple seed and get the Apple.

Today the Company has $196 billion in cash and is raising via a 40 year bond a further $14 billion , in short will have $210 billion in cash. The total debt within the Company is $140b and piggy bank accountancy says that they really have $70 billion fully paid up. Steve Jobs surely did an incredible Job before he died as founder, though they tried to get rid of the maestro at one point.

So what will they do with the cash , takeover someone ? , Invest in a new sector like EV ? Or buyback shares. My bet is that they will do the latter which should boost share price. The doom mongers continue to say there is a crash coming and the Apple PE is 36 which 40 times less than the Tesla PE ( insanity ). The ungrateful say that Apple products are old hat, becoming unfashionable but that’s so unfair especially as we can all run our Empires with their product in hand, call , write and receive 24 x 7.

Last Quarters revenue was the same size of its debt and profit was $28 billion ( in 5 quarters it could pay off its debt ). At a time when certain sectors are failing we see these amazing upsides take Zoom or should I say Boom whose shares have risen four fold in a year. Hold these against retail where if it’s not online it’s almost game over ( I’m right I never have liked shopping ). The secret is then and you don’t need a Business degree buy what you like and not what you don’t like. Apple Inc is of course an American Company yet their designer of products was British just proving we still have a role to play on the planet.

There will be tremendous opportunities to invest well coming soon in the midst of this Industrial Revolution and it’s time to stay awake, look around at what’s going on and where we are going. I don’t want to miss the boat next time. Before I go one niggling thought though is that the American debt is now $23 trillion or 135% of GDP , 10 times more than the value of Apple on the market. Am I worried ? Yes, it’s got to get paid back at some point just like that $14b that Apple raised in 40 years time. Ahh , don’t worry too much inflation is coming at some point soon. Apples can rot of course, meantime they’re best eaten. Remember Eden, it all started with that Apple.