2 months ago • 2 mins
What’s going on here?
Apple’s stock broke its own record on Wednesday to end the year on a high.
What does this mean?
Characteristically cool and steely Apple broke a sweat in the summer, when China’s flustered recovery snuffed out iPhone sales in a usually reliable market. But what a difference a couple of months makes. Well, and shrinking costs, robust sales from services like Apple Music and iCloud, and some investor optimism on the back of rate-cut rumors. Apple’s shares reached a new record high of $197.96 on Wednesday, meaning they’ve been pulled up 52% this year alone. So with a market value of over $3 trillion, Apple’s worth almost as much as Europe’s biggest stock market, France, as well as the individual economies of Italy, Canada, Australia, and Brazil.
Why should I care?
For markets: Little fish, the pond is yours.
Apple’s worth around $1 trillion more than at the start of the year. That’s an awesome feat, especially when you consider that only five US companies are valued above a single trillion: Microsoft, Alphabet, Amazon, and Nvidia. After all, it’s big, profitable tech companies that have attracted investors this year, since their heft makes them more resilient against high rates, inflation, and economic slowdowns. But thanks to forecasts of a kinder 2024, a whole host of neglected stocks have been earning their way back into portfolios, paving the way for broader rallies in the new year.
The bigger picture: Quality never goes out of style.
Apple wasn’t exactly cheap when Tim Cook took charge back in 2011. But since then, the stock’s risen seventeen-fold. The company’s investors must have read the Charlie Munger book of wisdom, then. Buffett’s late right-hand man advocated for buying outstanding companies at reasonable prices – not decent ones for cheap. Case in point: Apple makes up more than half of Berkshire Hathaway’s portfolio, and the sizable deposit has paid off handsomely.
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