investing in the US stock market simple
Written by ABC AUDIO on October 2, 2022
Apple (AAPL) needs no introduction. Founded in 1976 by two Steves, Apple has been delivering marketing-beating returns for some years now. In the process, it has become the first trillion-dollar company on our planet. ‘Think Different,’ as its tagline says, Apple has played their cards differently and innovatively.
After tripling investors’ money in the last 5 years, is there any more steam left in Apple’s growth story? Well, absolutely yes. As the stock price has corrected around 15% from its peak, it presents a good opportunity to invest in Apple right now.
https://issuetracker.google.com/issues/250386363
https://issuetracker.google.com/issues/250409700
https://issuetracker.google.com/issues/250409055
https://issuetracker.google.com/issues/250409759
https://issuetracker.google.com/issues/250409703
https://issuetracker.google.com/issues/250409705
https://issuetracker.google.com/issues/250409706
https://issuetracker.google.com/issues/250409768
https://issuetracker.google.com/issues/250409707
https://issuetracker.google.com/issues/250409061
https://issuetracker.google.com/issues/250409709
https://issuetracker.google.com/issues/250409710
https://issuetracker.google.com/issues/250410971
https://issuetracker.google.com/issues/250410973
https://issuetracker.google.com/issues/250409064
https://issuetracker.google.com/issues/250410974
https://issuetracker.google.com/issues/250409069
https://issuetracker.google.com/issues/250411140
https://issuetracker.google.com/issues/250411731
https://issuetracker.google.com/issues/250411143
https://issuetracker.google.com/issues/250411737
Read along to know why investing in Apple makes sense and how to invest in US stock from India.
3 Reasons to Invest in Apple from India
Apple is the world’s largest cash cow business that shows no signs of slowing down. In India, we don’t have any company comparable to Apple. That makes a solid case to invest in Apple from India. If this doesn’t convince you to buy Apple shares, the following three reasons will.
- The Apple Ecosystem
Since the launch of the first iPhone way back in 2008, Apple has slowly built an ecosystem around it. This ecosystem is too hard to get out of once you’re inside. Apple gadgets’ utter convenience and performance speak volumes to the company’s product quality and attention to detail.
In the Smartphone space, Apple now has a handful of product offerings. Other than iPhones, Airpods and Apple Watch generate a good amount of revenue and are market leaders in their segments. All of these gadgets are so intertwined with each other that you simply can’t replace one with another band. Thus, the Apple ecosystem contributes to a top-tier customer retention rate.
- Margin too Big to Ignore
Apple always has enjoyed a command over its product’s pricing. Currently, it has a margin of 35.7% for its product line-up. Not to mention the service margin, which stands far superior at 71.5%. For the quarter ending in June, 2022, the gross margin stands at $35 billion. Now that’s a big fat margin that justifies Apple’s $2.5 trillion valuation. - Index-beating Performance Despite Headwinds
Despite the growing inflation rate rampaging in the US market for some months now, Apple’s stock price has remained less eroded compared to peer tech businesses. That’s largely due to a solid performance in the first three quarters of the fiscal year 2022.
For comparison, the NASDAQ Composite index has delivered a return of -22.19% in the trailing twelve months. In this same period, Apple’s return is a modest +5.4%. The stability Apple brings to the table in the rough waters is often unmatched by other tech giants.
Why Now is the Time to Invest in Apple?
If you want to hold Apple shares in your portfolio for longer, you can invest anytime you wish. But for short-term investors who want to hold it for a couple of years, this is a great time to accumulate Apple stocks. Here’s why:
It’s that time of the year when Apple launches their new iPhones. As the latest and greatest series of iPhones are out, Apple is going to have a pretty good quarter in terms of sales.
Right now, Apple is fairly priced at $150 a share. It translates to a P/E figure of 24.90. Comparing it to NASDAQ’s P/E of 23.62, Apple seems undervalued by a good margin.
Apple’s stock price has been moving sideways for a year now. That makes any day it could get momentum and march towards $200.
Apple is investing heavily in its services like AppleTV+, Apple Music. Being high margin businesses, these verticals can greatly contribute to revenue growth in the near future.
How to Buy Apple Shares in India
Technology has expanded our reach. Now you can buy stocks from any part of the world from the comfort of your home. All you need is a trading account with international brokerage firms like Stockal.
With Stockal, you have four distinct ways of getting exposure to Apple’s growth.
Direct Purchase: You can buy Apple stocks directly with your US trading account in Stockal. With minimal fees, you can keep the maximum profit for yourself.
Through Mutual Funds: Stockal presents mutual funds that heavily invest in tech stocks like Apple. This way, you can technically own Apple stocks without putting much effort into research.
Through ETFs: Like MF, you can buy ETFs that invest in Apple through Stockal. ETFs often have lower charges than MF, making them a great indirect investment option.
Curated Stacks: Stockal presents stacks of handpicked stocks prepared by experienced portfolio managers and hedge fund managers.
Stockal has made investing in the US stock market simple, smart, and safe. With Stockal, you can easily complete all the required compliances and start buying US stocks in a matter of days. Stockal also presents world-class research and analysis of stocks for free.
Conclusion
If long-term wealth creation is your goal, then Apple is your best bet. This is the century of tech businesses. Like other tech firms, Apple has a lot of room to grow further. If you don’t want to miss out on this growth opportunity, you should invest in Apple right now.
If you are new to international investing and don’t have a US trading account, you should open one today with Stockal. Stockal brings a one-of-a-kind investing experience for first-time investors. With hassle-free account opening and easy-to-comprehend UI, Stockal makes international investing easy and fun.