Is It Worth Buying Apple Stocks Now? How Many Should You Invest?

Timing is everything in investing. Apple's stock has had a tumultuous journey since its initial public offering in 1980. From significant growth in the early days to a stagnant period before 2009, the company has seen a remarkable upward trend since then. As of 2011, Apple had become the world's largest company.

Warren Buffet’s Involvement and Financials

Warren Buffet, a legendary investor, invested in Apple in the first quarter of 2016 and continued to buy and sell shares. Currently, Warren Buffet holds 916 million Apple shares, making them worth approximately 162 billion dollars. These shares represent 48.80% of his stock portfolio, indicating his confidence in the company's future.

Apple's Business and iPhone Dominance

Apple's business is heavily reliant on the iPhone, which makes up 52.11% of its operating income. While challenges such as smartphone market saturation and competitors' price wars abound, Apple's core value lies in its creativity. This enables the company to continuously design new products and keep its brand appealing to fans.

The AR Headset: Vision Pro

Recently, Apple has revealed its AR headset, Vision Pro. Expected to be the next-gen interactive terminal device like the smartphone, the unveiling sent the stock price surging to a record intraday high of 184.90. However, the price soon dropped back down to 179.58, largely due to the headset being priced higher than analysts’ projections (around 2,500 to 3,000 dollars).

Unexpectedly, AR concept stock prices rebounded the day after Apple's reveal of Vision Pro. Gene Munster, a portfolio manager at asset manager Deepwater, was initially skeptical but later reversed his stance. Analysts now predict that the success of Vision Pro could propel Apple's valuation to 3 trillion dollars. Projections suggest that Apple's shares could reach 220 by the end of 2023, 250 in 2024, and continue to steady climb to 510 by 2030.

Market Implications and Investor Considerations

Despite Apple's profitability supporting the development of Vision Pro, its success is yet to be proven.

How Many Stocks Should You Buy?

Determining the number of Apple stocks to buy involves careful consideration. Factors such as your risk tolerance, investment goals, and time horizon should be taken into account. As a general rule, it's important to diversify your portfolio to mitigate risk. Apple stocks can be a part of a well-diversified portfolio, but balancing with other stocks, assets, or investments is crucial.

Conclusion

The decision to invest in Apple stocks now hinges on your personal investment philosophy and risk tolerance. Given the company's track record of innovation and profitability, it could be a worthwhile investment. However, it is essential to carefully assess the current situation and potential risks before making any investment decisions.