If you want to be a long apple, check out Berkshire

News Summary:

  • Apple is a company that has built a cult following over the past decade with products like the iPhone and MacBook. Apple stock has a cult following, making the company the world’s largest with a market capitalization of $2.3 trillion and offering huge returns to investors. It’s a profitable business with a solid balance sheet, but there are some issues with the stocks we highlight today. The first is supply chain issues with China, the company’s main manufacturing base.

  • It’s been a while since our last update on Apple (NASDAQ: AAPL), but with Christmas approaching, I thought it would be a good time to write an article. I haven’t owned stock since late last year, but it’s a quality company that makes innovative, quality products. (NYSE: BRK.A) (NYSE: BRK.B) to focus on why you decided to contact Apple. This would have turned out to be a pretty good deal, as Apple’s stock is down more than 20% year-to-date while Berkshire’s is basically flat.

There have been problems with the protests and the company is exploring options outside of China, which has created uncertainty in the company’s supply chain in the short term. One thing is the possible outflow of ETFs and funds, many of which hold Apple as a core position. The stock isn’t cheap today either, with a 23.1x gain. This is well above the average multiple of the last decade, and growth is expected to be less impressive over the next few years. They continue their massive buyback program for another $90 billion in 2022.

Gross margin increased by 1% to 36.3% in products, 2% to 71.7% in services, and increased 1.5% overall (to 43.3%). Net profit margin decreased slightly (from 25.9% to 25.3%) due to higher operating expenses and taxes. While this decline isn’t ideal, Apple is still a profitable company, and growth in its highly profitable services segment, which is the bulk of its business, means it can keep its overall profit margins high.

I would like to know if the 1% buyback tax, which will take effect in 2023, will affect the program. Yields today are small at 0.65%, so they are not very attractive to income-seeking investors, but the payout rate is Low, with stable dividend growth over the years. For me, Apple remains a watchlist stock for now, but we’ll see if 2023 offers better buying opportunities. As I said in January, Berkshire Hathaway is now the best way to keep Apple going. Revenue increased 8% overall compared to fiscal 2021, with the Mac and services segment leading 14% growth.