Warren Buffett and many other notable investors have begun piling into Apple Inc. (NASDAQ:AAPL) since 2016, when Apple’s stock took a bit of a dip toward the $90 range on concerns about Apple’s ability to innovate and grow long-term. Since Buffett’s entry into Apple stock around the $90-$95 level, AAPL has since rebounded to more than $150 per share, coming down recently on rumors that the new iPhone 8 will be sub-par, or at least below analysts expectations for the phone marking the 10th anniversary of the iPhone phenomenon.
One of the things Buffett has pointed to with Apple as a reason for getting in to a 100% tech-focused company (his first pure-play tech stock purchase ever) is Apple’s brand equity and customer loyalty for the company’s products. While still very much a technology and innovation-centered firm, Apple is also in the business of manufacturing and selling consumer goods, something Buffett has a range of experience with in owning a wide range of consumer goods companies over the years.
Regardless of how an investor looks at Apple (as a tech stock or a consumer goods play), Apple remains one of the world’s best brands, selling a high-margin product to a consumer that keeps coming back for upgrades and high-margin purchases of accessories over the years. With technology upgrades expected to continue and newer and better iPhones expected to drive sales for the indefinite future, Apple remains one of the best companies out there for investors wishing to buy a "forever" company today.
Invest wisely, my friends.
