Anyone considering an investment in Apple [stckqut]AAPL[/stckqut] stock faces a challenge. The company is huge, its shares are volatile, and its moves are widely followed on Wall Street.
Yet still, this is a good time to buy shares of Apple.
In fact, you may already have a stake in the tech titan if you own a S&P 500 index fund. As a market-cap weighted index, the S&P’s largest position is Apple, with a market value of around $550 billion that is worth more than the 90 smallest S&P 500 components combined.
And for those who are bullish on this stock, it appears that once again, Apple has found a short-term bottom. The chartists have been pleased with the stock’s recent performance, the Wall Street analysts have issued upgrades. Beyond that, here’s what’s working in favor of Apple:
- Bargain valuation
- Dividend and dividend-growth
- Buffett’s billion-dollar bet
- No news isn’t bad news
- Software innovation, not hardware innovation
- Value is hot, growth is not
Objectively, those who shorted Apple or bought puts on the stock a few months ago made smart moves. But that doesn’t mean that long-term or even medium-term investors should consider the stock perpetual fodder for the bears. Indeed, if you’re investing for tax-efficient capital gains and long-term dividend growth potential, enjoy your Apple.