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
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
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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
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