Follow me on Front to view my full investment portfolio:
Oh ladies and gentlemen welcome back to the channel here that was just an absolute first for me i just recorded a 20 minute video on apple stock never hit record on the camera so this is officially take two of this video so recently i went on a $5,000 shopping spree here i spent $5,000 on black friday and cyber monday i really put my orders in on cyber monday but
I want to tell you guys exactly what i bought on this cyber monday a lot of people thought that best deals for black friday and cyber monday were to be had on television sets and kitchen aids and all that but i found the best deals to be in the stock market so i ended up getting the iphone at 25% off i bought 18 shares of apple at 173 fifty-eight compared to a
High of 225 just as recently as september of 2018 so that was a 3124 dollar purchase of apple stock this is a brand new addition to my portfolio and i also bought my favorite ecommerce company at this point in time jd comm at 60% off added another 99 shares to my portfolio at 2069 per share and this is a company that was just recently trading at $50 per share
Before all of this trade war drama so i put another 2048 dollars into that stock so i spent about 5,200 dollars on this cyber monday into the stock market and it’s very interesting to me how people that have that consumer mindset where people will go out there and buy the brand new tv or the brand new kitchenaid or whatever electronics products they’re looking
For and they’ll buy these things at 20 30 40 50 percent off and they’ll throw money at these things all day but when you see deals happening within the stock market when you’re seeing apple stock at 25% off people don’t buy the stock and it’s crazy to me because that’s how my mind works i look at this and i see apple $225 stock down to 175 i’m gonna be buying jd
Com $50 stock down to 20 i’m definitely buying but i guess it’s just a mindset you either have it or you don’t but a lot of people are just afraid to buy stocks on sale that is certainly not me and i backed the truck here on cyber monday and loaded it with some some fine companies in my opinion here but that’s what i’m gonna focus on in this video is the top six
Reasons why i decided to purchase apple stock at this point in time because i’ve done a lot of videos recently about jd comm so if you guys want to understand my perspective on that company the other company i bought here make sure you guys check out those videos over on my channel now before i get into the video i just want to mention if you guys are interested
In picking up a completely free stock worth up to one thousand dollars we ball is currently running a promotion where if you open an account with them you don’t even have to fund it if you don’t want to they’re gonna give you a completely free stock worth up to one thousand dollars that is going to be the top link in the description below that is an affiliate link
You guys don’t have to take me up on this offer if you don’t want to but if you’re interested in grabbing that free stock that option is available to you top link in the description below anyways now let’s go ahead and talk about my top six reasons for why i am buying apple stock why i decided to add this and start a beginner or starting position here in this stock
Number one my first reason for buying apple stock is that this stock currently trades at an earnings multiple or price to earnings ratio of fourteen point eight compared to the s&p 500 which trades at an earnings multiple of twenty two so at this point in time based on that price to earnings ratio apple is significantly less expensive than the overall market
So if i had to choose right now between dropping ten thousand dollars into an s&p 500 a tf and ten thousand dollars into apple stock i would personally choose investing into apple stock because they are trading at a very reasonable valuation in this market there are a lot of other companies if you look at the fang stock and you look at the price to earnings
Ratio of these companies apple is a really good value based on that price to earnings multiple so that is one of the core reasons why i began a position in apple is because i am very comfortable with this valuation based on the potential this company has long term the second reason why i bought apple stock is because this is both a good growth stock as well as an
Income stock and most people when you think apple you think technology you think you don’t really think income but apple is beginning to become a good dividend picture and they currently pay a dividend yield of one point six six percent and so i absolutely am reinvesting my dividends here with apple that way i can take advantage of that compounding effect here
Earning dividends off of my dividends but i think this is a great opportunity here for people who are looking for both growth and income from an investment i see this as a company that has really good growth potential going forward they’re more of a conservative than an aggressive growth stock but they also have great income potential and they can become a very
High dividend payer in the years going forward so i see a wonderful potential here to be paid by apple in two different ways and i know a lot of people are concerned about the stock market particularly in 2019 whether or not we’re gonna see much growth within the stock market and if you are concerned about that this could be an interesting way to guarantee yourself
A return for next year because while dividends are never guaranteed it’s a pretty safe bet that that dividend is going to be consistent for 2019 and you can pretty much guarantee yourself a one point six six percent return in 2019 by investing in apple stock and taking advantage of that dividends so apple is an interesting pick here for both growth and income
Investors and people who are looking for a blended strategy of these number three the third reason why i like apple is because they are very generous with their share buybacks they just wrapped up by over two hundred billion dollar share buyback they had started back in 2012 and in mid 2018 when that came to a close they announced another one hundred billion dollar
Share buyback and right now if you consider the fact that this company was valued at about one trillion dollars that’s about 10% of the market capitalization of this company that’s going to be brought back over the coming years so that is what i like to see is when companies are being generous with their share buybacks now a lot of people are not familiar with why
A company would buy back their own shares so i want to go ahead and cover a couple of reasons why they do this first of all one reason that you will see is that companies are looking to inflate their earnings per share by reducing the number of total outstanding share it’s going to increase the earnings per share so it’s kind of an accounting trick for them where by
Basically taking shares off the market it inflates the bottom-line earnings and it looks better for shareholders now is that the only reason for a company to buy back shares no but it is an advantage for them and it’s a reason why a lot of companies do this second of all it’s a way for companies to put idle cash to work apple is a company that is sitting on a lot of
Cash and just like consumers we don’t have a lot of short-term options for investments short term bond yields are not that great cds pay next to nothing and checking accounts pay next to nothing and we don’t want to have money sitting there being deteriorated and eaten up here by inflation and so we like to put our idle cash to work just like apple does and it’s a
Way for them to put that cash to work and not have it sitting there being deteriorated by our enemy their inflation and then the final reason why companies will do this is because it’s a way for them to reward shareholders outside of raising the dividend because you have to understand that companies go through business cycles and maybe they’re doing exceptionally
Well at this point in time and they have a lot of cash they could increase the dividend but let’s say they know down the road a couple of years they might be in a poor business cycle or a different part of the cycle and they’re not going to be making as much money they don’t want to raise that dividend and then have to cut it in the future companies would rather
Raise the dividend slowly and steadily and so it’s a way for them to reward shareholders without necessarily increasing that dividend and getting ahead of themselves so that’s a couple of reasons why companies will do a share buyback and again that’s why apple is doing this as well number four the main reason why i decided to buy apple at this point in time is
Because i believe that all of these perceived negatives surrounding this company are short term obviously me being a long term investor i look at where is this company going to go in the next five years in the next 10-15 years i don’t look at companies on a quarter by quarter basis and a lot of people do that and that is why there is this buying opportunity that
Has shown up here with apple stock it is not common that you’re going to see a buying opportunity of twenty to twenty five percent off of a stock like app so this is what i believe are the perceived negatives of apple stock right now number one we know there was an underwhelming product launch here in 2018 the latest and greatest iphones were not necessarily that
Great because apple has been up against the law of diminishing returns for a very long time and last year’s model of apple products are still brilliant functional pieces of technology and so the concern there is is there going to be enough of an incentive for people to upgrade to the newest iphone but people are very loyal to their apple products there’s a reason
This is an apple computer sitting right here and not at oshima or a lenovo or ibm it’s because of the strength of this brand and the loyalty people have to this brand and this is not going to go away ever in my opinion the second perceived negative right now is in their most recent earnings report which was a very solid report there was weak forward-looking guidance
I don’t really look at that as a negative again short-term turbulence perceives negative in the short term they’re in a bit of a hiccup right now in a longer ongoing trend and some people are getting caught in this trap and selling off at a very poor time other than that we know that apple mentioned they are going to be no longer reporting unit sales individually
Some people believe this is apple trying to hide things from shareholders and then the most recent short-term negative or perceived negative for the stock is that trump is talking about slapping a 10% tariff on iphones we’re basically imported iphones from china would have to have a 10% tariff on them that’s going to increase the price of the iphones for consumers
And people are fearful of whether or not consumers are gonna pay 1100 for an iphone instead of a thousand and so what i believe this to be is all short-term noise short-term negatives that are not going to affect apple in five or ten years in five to ten years nobody’s gonna be talking about china tariffs or 1/4 of for looking guidance or one underwhelming year here
With their products this is all short-term turbulence and long-term investors understand that and a lot of them are taking advantage of this opportunity number five this ties in with what i said already with number four apple is no longer a company that you scrutinize and look at on a quarter by quarter basis they have such a long and well established track record
At this point in time you don’t have to look at apple quarter by quarter and crunch the numbers and say oh you know they had a bad quarter i wonder if this is that if this is it for them they have been around for a very long time they are ever they are at one point in time the world’s most valuable company i know microsoft might have slipped in there for a little
Bit but they are the world’s most valuable publicly traded company for a reason very strong track record there are so many reasons to love this company and they are not going anywhere anytime soon and apple is one of the only stocks i can think of where if you were an investor in this company you wouldn’t even necessarily have to look at all the quarterly earnings
Reports i believe with apple you could take a look at that annual report get an idea of the long-term trajectory of this company and you don’t even really have to worry about the quarter by quarter basis with this company because they have such a long and well established track record and i think a lot of people are scrutinizing them on a quarter by quarter basis
And that caused you know apple to go on sale twenty five twenty to twenty five percent at this point in time and then my final point here on apple is that this is one of the only investments that i would call a beginner friendly investment i believe this was on my top stock picks for beginner as far back as 2017 i’ll throw a screen shot up if that’s the case and
So i see apple as a beginner friendly investment for a lot of the reasons i mentioned already they have a massive moat very strong brand very loyal customer base along operating history and it’s a stock that is not very volatile and it’s also a growth and income investment at this point in time so i see it as a very solid pick here for beginners but on that note
I just want to remind you guys that if you are you know looking at videos like this and then going out and buying stocks always make sure you’re conducting your own research on your investments in forming your own opinion about them because you do not want to be a piggyback investor you don’t want to solely buy stuff because some talking head on tv or some youtube
Guy or some blogger says oh i’m buying the stock you always want to formulate your own opinion of these companies because that’s what’s gonna keep you as a loyal investor in the long term and that’s going to allow you to ride out possible bumps in the road you need to be unwavering based on the market when the market is telling you you’re wrong and you’re an idiot
You need to be firm in your opinion and your thesis of this stock and if you don’t formulate your own opinion you’re gonna be like a in the wind being blown in whatever direction the market is going but anyways guys that’s gonna wrap up this video i hope you enjoyed it i would love to hear what you guys think about apple stock down in the comment section below
Are you buying right now are you selling are you waiting to buy we’d love to hear what you guys think and then of course like i mentioned if you guys want to grab that free stock worth up to $1,000 top link in the description below but thank you guys so much for watching this video and i will see you in the next one
Transcribed from video
ADDED $5,000 TO MY STOCK PORTFOLIO 💸 By Ryan Scribner
