How Much Will Apple Be Worth In 5 Years Data by YChartsShares have returned 900% in those ten years, before dividends, for a compounded annual return of approximately 26%, easily trouncing the returns of the broad market during that time frame. Importantly, shares have risen a lot more than the company's market capitalization, which grew by only 550% over the last decade. The difference can be explained by the company's large share repurchase programs, which have lowered the share count drastically over the last decade. Right now, shares trade for $125, up 57% over the last twelve months, but down 6% in 2021 to date. The current consensus price target is $156, which implies an upside potential of 25%. Since there are no signs of shares leaving their current trading range right now, I personally do not think that Apple will breach $150 in the near term.
They can just say, ah, "I can't stand it. It's too volatile for me. I'll just put my money in money market funds or put my money in the bank." That's one choice. The other choice is they can invest directly in the stock market by buying stocks individually, or they can buy mutual funds and invest in stock. I think they can do the course of investing in mutual funds and every now and then, they find some stocks, they have a chance the make a big hit. I think the average person could know three or four or five companies very well. They could lecture on those three or four or five companies, and if one or two of 'em becomes attractive, they buy 'em. And people have lots of edges and they throw them away.
Today, Visa operates the world's largest payments network. Heck, including dividends, Visa's stock has returned 861% over the past 10 years. That beats the S&P 500's total return by nearly 490 percentage points. Buying stocks to hold and grow your savings over the long term i.e. 5 years and beyond. Aiming to profit in the short term from a stocks price moves.
Time invested not timing matters, the longer you can give your investments to grow the better Timing is crucial, but consistently buying low and selling high isn't something many can achieve. Like any investment, the value of your investments can go down as well as up, so you may get back less than what you invest. Investing for the long term makes you less sensitive to leaves movements though. Dipping in and out of the market will likely hurt your investment returns. You might miss the worst days but you'll also miss the best days.
Investing is one of the best ways to grow your savings over the long term. Constantly making short term decisions is likely to come at the cost of your long-term investing goals. Tax loss harvesting may generate a higher number of trades due to attempts to capture losses.
There is a chance that trading attributed to tax loss harvesting may create capital gains and wash sales and could be subject to higher transaction costs and market impacts. In addition, tax loss harvesting strategies may produce losses, which may not be offset by sufficient gains in the account and may be limited to a $3,000 deduction against income. AAPL has, I believe, significant upside potential over the next decade, but that should not be a large surprise - many companies will see significant growth over a time span this long.
I personally am not too excited about a 7% expected long-term return. When we consider that shares do have considerable downside risk in the next 1-3 years if Apple's valuation declines, e.g. due to rising interest rates, it may be a better choice to stay on the sidelines for now. Long-term investors will likely not do badly when they buy shares at current levels, but they will likely also not do great.
For now, I'd rate Apple a hold, and a potential buy if its valuation comes closer to the longer-term average. Those that are more optimistic about new product launches may disagree and favor buying here, but it could turn out that waiting for a better opportunity is the best choice here. Well, if people don't have the stomach, they really don't have it, the volatility's too much for them with the stock market, they can avoid it. They could buy money market funds and they'd get a little bit better than inflation. They will not get, in my opinion, the same return the next 20 years, the next 30 years they would get by buying stocks.
The differences are massive over 30 years, but that's not a bad return to get a positive return. Mutual funds have billions of dollars to invest, and therefore will only achieve limited returns as the options to invest large sums are constrained. Mutual funds must also deal with constant inflows and outflows of capital. Each month capital arrives from 401k and pension funds, and has to be invested according to the fund's rules, and allocated as such.
Each month retirees withdraw funds to pay for their livelihoods, and therefore stocks must be sold. One of the golden rules of the stock market is that you cannot be impatient. It is all about patience, and if you have that, sky is the limit. This holds true for equity investors who invested in MRF shares in April 1993 and held on. MRF , which debuted as a public company with a face value of Rs 10 per share, has delivered more than 7,40,109 per cent returns to investors in the last 25 years. On April 27, 1993, the company's share closed at Rs 11 compared to the current price of Rs 54,488 on BSE.
The scrip hit its lifetime high of Rs 81,423 on April 30, 2018. The famous company that have introduced to the world many amazing technology products like and running at the same time one of the biggest online markets on earth . Apple has been an amazing stock over the past 10 years. With a huge cap of 500 billion dollars and 100 billion dollars in ready cash, Apple never let down it's investors and the consumers are rushing hard to catch the new products introduced by apple on solid bases. Right now, we are reducing risk within our equity assets, so it's good timing for us that we can defer or eliminate some of the embedded capital gains tax, but it is a 10-year holding period.
I would invest in shares of companies that already use artificial intelligence for optimization of energy flows and storage. For example, Stem, which recently became public via a SPAC merger with Star Peak Energy Transition Corp. I like that Stem has both energy storage and IT solutions on single platform and its IT revenue is based on subscription model with long term contracts.
Wood Mackenzie Energy Storage Service expects that capacity of installed batteries will grow 25 times over the next 10 years globally. That promises exponential growth in market capitalization for market leaders. We're not expecting these kinds of higher-risk opportunities to be a mainstay of people's portfolios, but small sized allocations may make sense for some more adventurous investors.
This is a developing area, and we expect to see more detail in the new year. We've been championing the rights of retail investors in our wider engagement when we have the opportunity to. In fact, our Chief executive, Chris Hill, wrote a joint letter alongside other platform bosses to encourage firms considering listing on the stock market to offer the opportunity to retail investors too. The three years prior only 7% of new listings had been made available to regular investors.
We just feel that the opportunity to invest should be made available so that people can take advantage if they want to. We're also seeing a commitment to improve the way pension schemes help people receive information and get help when they get close to retirement. Further recognition that we've all got personal responsibility for having enough money when the time comes to finish work. Well, I think it was the recession of '81 and '82 that was the wake-up call. It's competitor in the broadcast industry independent of mutual fund managers. Now you look at AT&T, about 11 years ago they broke up AT&T, had one million employees.
One out of every hundred Americans was working for the telephone company. Would we be better off if they had two million employees? I think we're just better off that they have less employees and they're doing a better job. We've had nine recessions since World War II. This was the worst. We had a 20 percent prime rate, 15 percent long governments. " I looked up, he was right, or she was right. But I was ready. I mean I said, "These companies are going to do well once the economy comes back.
I don't see why we won't come out of this one." And it came out and once we came back, the market went north. The FAANG stocks have, for the most part, outperformed the markets, offering shareholders sizable returns on their investments. In fact, a portfolio consisting of $5,000 in the FAANG stocks ($1,000 in each stock) five years ago would be worth a total of roughly $27,000 today—a 440 percent return. FundsIndia is India's friendliest online-only investment platform. In short, FundsIndia is your one stop shop to build wealth. Rising interest in technology funds coupled with rising share prices does wonders for AuM.
Fees are charged as a percentage of AuM and fixed administrative costs mean revenue growth feeds quickly through to higher profits. Cash conversion is strong and a large proportion of this is paid back out to shareholders with a dividend yield of 5.4% - although remember that this isn't guaranteed. As the name suggests, this tracker fund invests across developed stock markets while being mindful of ESG issues. It has around two thirds in US-based companies, with the rest invested across areas such as Japan, the UK and Europe.
It offers exposure to sectors such as technology, pharmaceuticals and financials - which have done very well in recent years, though that is no guarantee of future returns. Importantly, it won't invest in tobacco companies, coal producers, makers of controversial weapons or persistent violators of the UN Global Compact Principles. The company works as an international online travel company that gets customers to make hotel reservations, car rentals, and purchasing airline tickets and vacation full offers.
The company has a solid and strong balance sheet with stocks selling at nearly 2000$ now. Further growth is expected for this company on the short term too. The 15 year investment in this company would had got you in for 8-9$ per share in 2001. If you have invested 5000 dollars in this company 15 years ago you would had made the million dollars by now.
I also like the idea of digital tokens backed by physical gold. If you talk to millennials, they aren't interested in buying stocks and don't even have brokerage accounts, and they can't afford real estate. So they are looking for a store of value that's also convenient. They are interested in new technology and blockchain and using a digital wallet. But unlike Bitcoin and Ether, whose prices trade wildly, gold-backed tokens have an intrinsic value and should be a lot less volatile. The resulting gold can be tracked from mine to vault using blockchain.
When I first started investing in emerging markets in 1987, they accounted for just 5 percent of global market cap, and today it's about 40 percent. Our funds could only invest in six markets, and today it's about 70. Now is the time to buy in emerging markets, where we are seeing a terrific recovery. People like to use venture funds like ours as a platform for co-investing – they can see the companies and then, if they want, invest directly in future rounds.
Expected returns are the same as for other types of venture capital investments. Assuming reinvested dividends, shares of Apple have provided investors a gain of approximately 1,200%, or 29.2% per year, over the last decade. Including the original investment, if you would have invested $77,000 at the split-adjusted price of $11.50 a decade ago, your total investment would be worth approximately $1 million at today's prices. On the other hand, a single investor like you or I only have $1,000's to invest regularly, or perhaps a bit more/less. Our options are limitless and buying has no effect on the share price. We also don't need to fund retirement yet, so only purchases are being made typically.
Most individuals buy and hold for the long term, and have minimal trading/tax expenses. It should not be difficult to meet or beat the index by being an individual who has a bias to buy , stays fully invested for the long term, and is modestly diversified (20-30 companies). If you read Jack Bogle's books you'll see the data laid out in front of you. It doesn't matter if it's a bull or bear market, the best strategy is to buy and hold a diverse portfolio. The actively managed funds, in fact, are more likely to underperform in a bear market because they are more likely to buy high and sell low . Data by YChartsShares could, five years ago, be bought for a very low 10x net earnings, which naturally was a great time to enter or expand positions.
In late 2020, however, shares were trading for as much as 40x the company's net earnings, which seems like a quite high valuation. Right now, AAPL trades at 28x trailing earnings, and at around 24x forward profits. In the above chart, we also see the median earnings multiples over the last 3, 5, 7, and 10 years. It is pretty clear that Apple's valuation has expanded over the years, which is why the median values are higher for the shorter "lookback" periods. This is especially true when we consider that interest rates will likely be higher a decade from now, which should pressure valuations for all equities, all else equal. I thus believe that a valuation of around 20x net earnings could be a reasonable estimate for 2031, which would be more or less in line with the 3-year median earnings multiple.
I personally assume that a 5%-7% revenue growth rate could be a realistic estimate for the coming years, although some readers will of course have different opinions. These companies now have more money for equipment, more money for research. These are going to be the companies like the next Staples, the next Federal Express, the next Compaq. Well, for some reason, the public looks at stocks differently than they look at everything else. You could have bought Wal-Mart ten years after it went public -- Wal-Mart went public in 1970.
You could have bought it ten years later and made 30 times your money. You say, "I'm still not sure of this company. They have a great balance sheet, great record." I'm going to wait another -- wait another five years, it goes up another four-fold. You say, "Now I think it's time to invest in Wal-Mart." You still could have made 30 times your money because ten years after Wal-Mart went public they were only in 15 percent of the United States. They hadn't saturated that 15 percent and they were very low cost.
You could say to yourself, "Why can't they go to 17? Why can't they go to 19? Why can't they go to 21? I'll get on the computer. Why can't they go to 28?" And that's all they did. I wrote three books and I had great help with doing it with John Rothschild, is I really want to help the average person. My wife and I have given all the profits from those books to charity. I want to help people do a better job investing, understand the market because what amazes me is we've had this phenomenal market. Now how come there's not a lot more people buyin' stocks? How come the number of registered shareholders hasn't gone up dramatically?
When antiques were hot, lots of who were doin' antiques. When baseball cards were in, thousands of people were into baseball cards, tens of thousands. So thewould have been 1955 and in that part -- the '50s were a great decade for the stock market.
And I said, "Gee, this makes a lot of sense." And so I watched it. I didn't have any money to invest, but I remember the stock market being very strong in the 1950s and some people, not everybody, but a lot of people on the golf course talking about it. Although Forex trading might be very risky especially when you lack experience and ability to take hard decisions at a very short time, some people made real money out of Forex .
