How To Invest In Apple
The rise of big tech in the 21st century has investors around the world asking “how to invest in Apple.” The Steve Jobs story is that of a college dropout who changed the way we think about and use technology in our everyday lives.
The impact Steve Jobs has had on the world we live in is undeniable. Whether you are reading this article on an Apple device or not, chances are there is one close by. Maybe it’s your son’s iPhone, your sister’s iPad, or your mother’s MacBook Pro. With more than 1.8 billion devices in use by customers around the world, the California-based tech giant has grown to heights investors once thought impossible. But success did not come easy in the early years.
In fact, from 1981 to 2007, the average Apple (Nasdaq: AAPL) stock price per year was under $5 per share. The future did not look bright. It took 26 years to right the ship. If you look at AAPL stock price history, you can clearly see things start to improve after 2007, the year the iPhone was released. Including the obvious exception of the 2008 market crash, Apple has only had three down years since 2002. That is an impressive run by any standard.
How To Invest In Apple (3 Steps)
If you believe in the success of Apple moving forward, now is your chance to put your money where your mouth is. So many people say “if only I had invested in Apple 20 years ago”. Well today is your chance to write your future success story. If you are interested in purchasing shares of Apple, here’s what you need to know.
1. Decide How You Want to Invest
Are you a more do-it-yourself type of investor? Or do you prefer to use a financial advisor or a more automated approach through your retirement accounts?
There are many ways to gain access to shares of Apple (Nasdaq: AAPL). You can invest in Apple by itself, buy shares of mutual funds that include Apple stock, or consult an advisor to purchase the shares for you. Fractional shares are also available through many brokerage accounts for investors with limited access to capital.
Once you decide how you want to invest, you’ll need to select an investment account.
2. Select an Investment Account
There are many types of accounts you can use. Most likely you already have a 401(k) or an IRA set up through your employer. In which case you can purchase shares of Apple directly through there. Additionally, you could open a college savings (529) account or a taxable brokerage account.
Taxable (non-retirement) brokerage accounts have become very popular in recent years as they allow you more flexibility to sell and cash out shares at any time without penalty. If you aren’t currently using a broker, Vanguard, Fidelity, Charles Schwab, Robinhood and Webull are a few options with low or no-cost fee structures.
3. Place an Order
Ok so you’re all set up with your brokerage account and you’re ready to place an order! Next, you’ll want to decide how many shares you’d like to buy and at what price. You have two options here…a market order or a limit order.
Remember you’ll need to deposit enough money into your account to afford the shares. As mentioned earlier, fractional shares are an option that eliminates this problem.
If you’ve just learned how to invest in Apple, it might make sense to execute your first order as a market order. This just means you are buying the stock at the price it is currently trading and this works well if you plan on keeping the stock for many years to come.
On the flip side, if you are looking to trade in the short term, you may want to be more selective about when you place your order and at what price. This is where a limit order will come into play. You have some options in this area, but we recommend setting a limit price that’s good until the end of the trading day.
This simply means you determine the maximum price that you’ll pay for the asset. If the stock trades lower than that price during the day, your order will be filled. If not, the order will be canceled and you’ll have to enter it again the next day.
Final Thoughts on How to Invest in Apple
Over the years Apple has proven to be a global success story. But how long will that story continue? Many thought after Steve Jobs passed, the company’s growth would slow. However, we’ve seen quite the opposite. The company continues to reach new heights year after year without any signs of slowing down.
If you believe in Apple, use the steps you’ve learned today and invest – not only in the company’s future – but in your future as well. To learn more about how to invest in Apple, Amazon or how to invest in stocks in general, sign up for our free daily Investment U e-letter today.
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Read next: How to Invest in Google
About Ben Broadwater
Ben Broadwater is the Director of Investment U. He has more than 15 years of content creation experience. He has worked and written for numerous companies in the financial publishing space, including Charles Street Research, The Oxford Club and now Investment U. When Ben isn’t busy running Investment U, you can usually find him with a pair of drumsticks or a guitar in his hand.