Apple is up 15.82% since it was added to the Wealth Accumulated portfolio at the beginning of February.
It is the largest position in the portfolio by a country mile.
24% according to my broker both through holding shares of Apple and through a large position in Vanguard’s US Equity Index, of which Apple is a sizeable chunk.
There’s more than one way to pony up for Apple, and why not?
Apple is the best business in the world and so it makes sense to me to disregard textbook portfolio management theory that usually trumpets spreading positions equally among 15-20 stocks.
Why Apple is such a large position in the portfolio
It begins and ends with research.
As fun as it is to distill investment reasoning and share it on social media platforms, there’s a grain of truth to me piling into Apple based on Warren Buffet’s love of the company.
The Oracle recently opined at the annual Berkshire Hathaway shareholders meeting:
It happens to be a better business than any we ownWarren Buffett
I also often take a leaf out of Peter Lynch’s book which encourages retail investors to pay attention to their daily experiences of using products and services, ‘stumbling onto the big winners in extracurricular situations’ as Lynch eloquently puts it.
I’ve been an Apple user for over two decades, seen the ups and downs, followed their story, and even stretched to a documentary here and there.
Apple, especially the iPhone, has been central to the daily operation of my life and the lives of millions of people across the globe.
I’m writing this blog post on the WordPress app.
Booking flights, banking, relationships, buying a house – the utility of a modern cell phone is unmistakable, and Apple simply makes the best cell phones in the world.
Their laptops, tablets, and watches aren’t too shabby either.
Why Apple is such a good business
Let’s take a look at a selection of Apple’s numbers from the last three years:
The explosive growth in earnings and ROCE is incredible and unlike other tech firms, Apple is not seeing a collapse in earnings since the reopening that other notable firms have been experiencing.
Sometimes a business makes things so good that everybody has to have the things they sell. That ability (or inability) to sell ends up in the numbers.