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Occidental Petroleum
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Apple Is the World's First $3 Trillion Company. How To Find The Next Apple?
On June 30th, at the close of US stocks, $Apple (AAPL.US)$ Inc. reported a closing price of $193.97 per share, representing a 2.31% increase in value and resulting in a closing market capitalization of $3.05 trillion.
This achievement marked a significant milestone for Apple as it became the first company ever to attain such a massive market capitalization.
In fact, Apple's market capitalization surpassed the combined values of $Alphabet-A (GOOGL.US)$ and $Amazon (AMZN.US)$, and was more than $500 billion higher than its closest competitor $Microsoft (MSFT.US)$, which is roughly equivalent to the market capitalization of three $Tesla (TSLA.US)$.
In order to understand how Apple reached a staggering market value of $3 trillion, let's take a look back at its history.
The Accomplishments of Tim Cook
Although Tim Cook may not have become the second Steve Jobs, he has undoubtedly played a crucial role in making Apple the most profitable company on Wall Street and in Silicon Valley.
As someone with experience in the supply chain, Cook oversaw Apple's move to shift its production base to Asia. He recognized that the procurement of components and management of service supply chains were major expenses for high-tech companies, and believed that working with hundreds of smaller companies in Asia would allow for greater scalability and cost-effectiveness.
Throughout Cook's tenure, he chose to focus on expanding Apple's most important product line, the iPhone, rather than making major changes to it. This approach involved continuously releasing new models that built upon the original design.
When comparing Apple's revenue structure before and after Cook's 10-year tenure, it becomes apparent that the revenue from iPhone sales has remained relatively stable. However, there have been notable changes in other areas.
[Explore moomoo Feature]
If you are interested in the composition of Apple's main business, you can easily access its financial report on moomoo.
AAPL > Financial > Revenue Breakdown
There have been several significant initiatives implemented by Cook that have had an impact on Apple's financial performance.
Under the leadership of Steve Jobs, Apple never paid dividends, even as its stock price continued to soar. However, after Tim Cook took over as CEO, he changed this approach and moved away from Jobs' "stingy" style. Not only did Cook continue to pay dividends, but he also initiated frequent stock repurchases.
In terms of profiting from Apple's stock price increase, several organizations have emerged as the biggest winners over the past decade. These include Vanguard, BlackRock, and Berkshire Hathaway.
$Blackrock (BLK.US)$ became Apple's largest shareholder in 2012 with a 5.3% stake, which has since grown to a current value of $170.4 billion.
$Vanguard Global Aggregate Bd Hdg ETF (VBND.AU)$ surpassed BlackRock in 2014 with a latest stake ratio of 8.33% and a stake value of $215.7 billion - representing substantial profits when compared to their initial investment amount.
Starting from the first quarter of 2016, $Berkshire Hathaway-A (BRK.A.US)$ - owned by Warren Buffett - began purchasing Apple's stock. The initial position amounted to about $1 billion when Apple's stock price ranged between $90 and $100. Over the following two years, Buffett continued to increase his stake in Apple's stock multiple times. By June 30, 2018, Berkshire Hathaway's position had grown to 255 million shares, with a stake ratio exceeding 5% for the first time, reaching 5.2%. It is worth noting that investing in Apple Inc. became one of Warren Buffett's most profitable investments.
[Explore moomoo Feature]
If you want to learn more about which institutions have shown interest in a particular star stock, you can find relevant information on moomoo.
AAPL > Analysis > Institutional Holdings
How to Find The Next Apple?
Although the macroeconomic environment may change over time, the criteria for selecting good company stocks remain relatively constant. While the specific criteria may vary from investor to investor, certain fundamental aspects tend to be consistent. These include stable and growing earnings, high return on equity (ROE), high dividend yield, and positive cash inflows - all of which are enduring indicators of a company's financial success and its potential as a good investment.
To help investors navigate these criteria, moomoo Learn provides a useful resource outlining four commonly used stock selection metrics. For more detailed information on these criteria and others, please refer to the Financial characteristics of good stocks.
These criteria include:
Stable and growing earnings: Earnings are an essential factor in considering a stock as a good investment. There are many ways to evaluate earnings, but growth and stability are key metrics.
High ROE: Return on equity (ROE) measures the profitability of a company relative to the money shareholders have invested.
High dividend yield: The dividend yield is the amount of money a company pays shareholders for each share they own divided by the current stock price. Mature companies are more likely to pay dividends.
Positive cash inflow: Cash flow refers to the net transfer of cash and cash equivalents into and out of a company, making it an important indicator of a company's financial health.
For more investment knowledge and trends, be sure to follow moomoo Learn.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Tinman7991 : 3.0 T not 30 T
Lejendary : There is an error in the opening where you typed 30$ trillion and not 3.
Dan57moo : apples marked significant milestone surpassed combined value higher than Tesla and Microsoft
Moomoo Learn OP Tinman7991 : Thank you for your reply, the errors in the article have been corrected.
Moomoo Learn OP Lejendary : Thank you for your reply, the errors in the article have been corrected.
BLM2020 : Microsoft is next
Cynthiia Colgrove : nice