Yesterday, Apple ($AAPL) hit a massive milestone. It became the 1st US company to hit the $1 trillion market cap. Recent positive earnings provided a catalyst that enabled Apple to hit the milestone. If you look at the long term chart, the stock seemed to be always on an uptrend. However, I want to discuss about the time when I first bought Apple.
Apple is one of those companies that is difficult to find an entry point. It seemed as if every week, it kept making new highs. I was always waiting for a dip in share price but that day never seemed to come.
On August 2011, I finally took the plunge and bought some shares....it the same month that Steve Jobs announced his resignation as CEO and assumed the position of chairman of the board. The stock dipped a bit during after-hours trading but recovered the next day.
From the days after Steve Jobs passed away, the stock eventually would plunge about 14% from its all-time high. As time went on, the stock recovered. Though, people began doubting Apple's success once it implemented the dividend, which signaled that the company's growth may be slowing. At one point, shares of Apple plunged over 50%. Yet, shares always recovered. Along the way, Apple kept increasing the dividend and share buybacks. And here we are today, a $1 trillion market cap.
The moral of the story? The stock market will always be unpredictable but if you buy shares in worthwhile companies, you can always be ahead in the long run. It's as they say, "time in the market beats timing the market."
That brings me to one of my favorite quotes by Warren Buffett:
"If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio's market value."
Look at that amazing chart! |
On August 2011, I finally took the plunge and bought some shares....it the same month that Steve Jobs announced his resignation as CEO and assumed the position of chairman of the board. The stock dipped a bit during after-hours trading but recovered the next day.
From the days after Steve Jobs passed away, the stock eventually would plunge about 14% from its all-time high. As time went on, the stock recovered. Though, people began doubting Apple's success once it implemented the dividend, which signaled that the company's growth may be slowing. At one point, shares of Apple plunged over 50%. Yet, shares always recovered. Along the way, Apple kept increasing the dividend and share buybacks. And here we are today, a $1 trillion market cap.
High of 100.01 Low of 55.79 (scary ain't it?) |
The moral of the story? The stock market will always be unpredictable but if you buy shares in worthwhile companies, you can always be ahead in the long run. It's as they say, "time in the market beats timing the market."
That brings me to one of my favorite quotes by Warren Buffett:
"If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio's market value."
The Oracle of Omaha, Warren Buffett (You should definitely get to know this guy lol..) |