Apple shares - Invest or not invest?

jonj123

OK I think X-O seems to be the cheapest option. Has anyone used them? Are they any good? Do they have any hidden costs etc?

somethingcorporate

I guess you are intent to do this despite not a single person suggesting it is a good idea. I agree with all the above, if all your have invested is £5-8k then such a large amount in one company is completely daft, especially one that has such a lot of competition gaining ground at an increasing rate.

If you have £50k+ I'd suggest £2-3k on a single share is fine in terms of risk to your overall portfolio.

If you just want it for a bit of kudos rather than taking is seriously then buy a couple of hundred quid, if you want to do it sensibly then look for some tech funds - much safer.

rockitup

jonj123 wrote: »

OK I think X-O seems to be the cheapest option. Has anyone used them? Are they any good? Do they have any hidden costs etc?

I haven't used XO myself but you need to ask them or check how much you pay in FX fees to buy or sell Apple shares. Some brokers charge in the region of 1.5% each way. I use TD Direct Investing and have a multi-currency account which allows me to trade US $ denominated shares without paying the FX fee. (I transfer from my US $ bank account to fund it)

So you may need to allow $15 per share in growth just to cover your buy & sell costs

I think their recent intra-day low of $534 will act as support in the short term but as pointed put above, Apple are not likely to be top dog forever. A fair few electronics & tech firms are releasing disappointing results recently but the old Apple stores are still just as busy for some reason and they have the money in the bank (more than the Fed actually)

jimjames

jonj123 wrote: »

OK I think X-O seems to be the cheapest option. Has anyone used them? Are they any good? Do they have any hidden costs etc?

So the answers say it isn't a good move but it sounds like you are already decided.

I'd echo the previous ones, putting that amount/proportion into a single share is not a good idea. Apple may have low PE now but if their margins drop the PE would also. You only need to look how Nokia has fared over the last few years to see what can happen very quickly. I'm not sure of a general rule of thumb but I'd suggest no more than 5-10% in a single share would be reasonable diversification.

Also remember that Apples shares are in dollars so exchange rate will also affect your investment and any dividends will also be in dollars which will be a pain to cash.

atypical

Reaper wrote: »

My feeling is that Apple has peaked. Their recent products have been incremental not revolutionary.

TV is ripe for innovation. Google is trying, and failing. 'Smart' TVs are like the feature phones of past.

I'm not convinced by the argument that people aren't interested in online content in their living room. If the product is sexy, intuitive and functional enough - and there's a strong ecosystem of apps and content - people will buy it.

That's exactly what Apple has been good at delivering. The challenge will be doing it without Jobs.

sabretoothtigger

Yea Jobs gone is a big maybe, he obviously set a good emphasis and screwing up maps seems to say they did need that kind of strong direction.

Maps are important to people, so dam simple an idea and yet..

My feeling is that Apple has peaked.

At 12 PE this seems unlikely. PE is historic and share price predictive so its a maybe but 12 is pretty low to be calling it a bubble as some have.

I dont think they fall dramatically. This company has like 50bn cash or more, they pay a dividend. They make alot of money and are very popular

The reason to fall is increased competition, Samsung, Asus, etc yet they are no lame horse just yet, even just cruising on past success would deliver alot of profit, enough to justify 12 PE surely

Can they double like the past is a better question.

Dont put all money into one share or over 10% A High Risk fund is run by L&G that covers the tech sector, 17% of the fund is in one share, this one. Buy that if you want

XO dont deal Nasdaq ? Iweb do and charge 5 only. Thats about the cheapest, there is another that charge 100 then 50p per year but I think like XO its Ftse based

I own Apple and Intel. I bought cisco last year.
Tech generally has good prospects globally especially where it can innovate - wireless is great for new countries economies lacking infrastructure is my view. Invaluable almost as tech can easily keep up with business growth without massive building


Maybe people should pop down PC world and let us know, which is easier to use vs the price. Apple or Samsung, have they still got a competitive advantage or not.
You cant run a premium this high on just a name, advanced utility over other products would do it

Thrugelmir

sabretoothtigger wrote: »

This company has like 50bn cash or more, they pay a dividend.

I suspect Apples tax affairs will come under scrutiny.

Apples problem is how to bring the cash back "on shore".

mania112

Apple have peaked.

Apple are past their best.

Come on guys. Really?

Sure, you may not be doubling your money in a year. But Apple are SO big and SO popular, they are in the category with McDonalds, Google, BT, BP (etc etc) which will always show returns over the long-term.

sabretoothtigger

BP is still struggling just a tad , much success and failure. Any company can fail, Im thinking retailers especially but for Apple the idea seems not fixed to one country or theme, they'll keep on selling I reckon its just a question of how fast

Thrugelmir wrote: »

I suspect Apples tax affairs will come under scrutiny.

Apples problem is how to bring the cash back "on shore".

Im not on shore, their production isnt, their buyers arent. So why do USA think they can capture this money, they cant in anything bar socialist idealism. Obama is going to fail badly if this kind of thinking is what he will rely on, taking money from people.

Most of the DOW profits are outside the USA hence so is alot of money thanks to their tax system being one of the worst in the world. So many unemployed and he really intends to tax everyone more, awful idea

jimjames

mania112 wrote: »

Come on guys. Really?

Sure, you may not be doubling your money in a year. But Apple are SO big and SO popular, they are in the category with McDonalds, Google, BT, BP (etc etc) which will always show returns over the long-term.

It is very hard for a company worth $600 billion to double their profits each year, even maintaining the current level means constant innovation. They may not be worthless but it isn't possible for a company of that size to grow at the rate of a $1bn company.

They may be up with Mcdonalds etc but if so I wouldnt judge it worth holding them as a share with all the hassle that entails from their US base.