It’s new to me but old to most. I read Apple approved to split their stocks, 4 to 1, they closed out at about $400, that’s about $100 a share after the split. Something so simple gave me so much joy, just a week ago I had no clue what a split was or how to calculate, and today I’m smiling because I have a clue.
Now, as I mentioned earlier I’m in no position to buy stock but I couldn’t help but play the game. Even though Apple is a viable organization, what’s going to happen next year? I’m anticipating that sales will plummet. Right now we have high unemployment, high GDP, we are in a recession but most haven’t felt it yet because the government is pumping all this stimulus money into to economy. So with that, I’m anticipating that Apple’s stocks will decline. So if I was in a position to buy, I think I would hold off until the top of the year, when stock prices decreased a tad bit more, purchase and later experience the increase once things bounce back.
For you pros what’s your thoughts?
Please be gentle, I’m new to this.
Apple Stocks, What’s Your Thoughts?
July 30th, 2020 at 09:12 pm
July 30th, 2020 at 10:04 pm 1596146672
Why are you looking at individual stocks as opposed to mutual funds/ETFs? What does the rest of your portfolio look like? How much are you saving for retirement and in what types of accounts (IRA, 401k, etc.)?
July 30th, 2020 at 10:41 pm 1596148913
After further review I realized it meant a hill of beans. I’m definitely more interested in MF and ETFs. No investing for me until I get this debt down, I do contribute to my 401(k) that’s as far as I can go now. I’m trying to learn about investing before I do anything outside of the 401(k). Thanks
July 30th, 2020 at 11:14 pm 1596150895
July 31st, 2020 at 12:05 am 1596153940
A stock splitting makes it easier for people to buy shares even if they don’t have a lot of money. Warren Buffet’s company, Berkshire Hathaway, never splits their Class A stock, so you would need @$274,000 to buy one share! (At some point, your mentor should have you research different classes of stock)
Apple might split their shares because they use stock as an employee bonus, and if each share is worth a lot, it’s harder to allocate. Or if people at the company own a lot, it’s harder to find buyers.
There is also a ‘reverse split’. This often happens when a company is doing badly, and shares fall below $1 in value. Most stock exchanges won’t list (trade) shares worth less than $1, so they ‘reverse split’ to get the value up by taking say 2 shares worth .75 and making them 1, worth $1,50.
Your thoughts on Apple are good. If unemployment stays high, people won’t be upgrading phones just for features - and they might turn to cheaper brands or used models if they have to replace something broken.
What do you think will be more popular in the next year? Or what is so needed that it will hold value and make money and pay dividends?
July 31st, 2020 at 03:06 am 1596164771
July 31st, 2020 at 02:38 pm 1596206313
My point was just that you shouldn't make investment decisions based on the share price or whether or not there has been a split.
If there are 1,000 shares of company XYZ at $100/share or there are 25,000 shares at $4/share, either way the company is valued at $100,000.
July 31st, 2020 at 03:46 pm 1596210399
Personally, I just stick with broad market index funds and etfs.
August 2nd, 2020 at 12:56 pm 1596372964