How can I invest in some Apple stock?

Discussion in 'Community' started by Spymit007, Dec 10, 2004.

  1. Spymit007 macrumors regular

    Spymit007

    Joined:
    Aug 25, 2004
    Location:
    Massachusetts
    #1
    Well as we all know, Apple's stock is doing phenomenally well. For a long time, I have always wanted to invest in Apple but I have no idea how to go about it at all. As a person who knows next to nothing about economics and simply wants to make an investment into a company that he loves and supports, what do I have to do in order to buy some AAPL stock??? How difficult is it really?
     
  2. zimv20 macrumors 601

    zimv20

    Joined:
    Jul 18, 2002
    Location:
    toronto
    #2
    to buy stocks, you need to open an investment account. any investment bank will happily do this for you.

    THAT said, i urge you to reconsider your plan. investing in any single stock is risky. diversification, including proper use of mutual funds, mitigates a lot of that risk.

    the key to making solid gains w/ low risk in the markets:
    - diversify
    - dollar cost average
    - be long
    - don't panic

    best thing to do is find a certified financial planner and let him/her help you set up a portfolio. then make regular monthly contributions and don't pay any attention to daily fluctuations. think long -- over the course of decades.

    i've got a CFP who set up a portfolio for me 5 years ago. over each of the last 5 years, my portfolio has beaten the market, and its beta is .57 (the beta of the market is defined to be 1). beta measures risk; lower values represent lower risk.

    regarding AAPL, it won't stay where it is. that ship has mostly sailed.

    good luck.
     
  3. Spymit007 thread starter macrumors regular

    Spymit007

    Joined:
    Aug 25, 2004
    Location:
    Massachusetts
    #3
    Thanks for the extremely helpful info. While my plan was to start with Apple, I was in fact planning on diversifying as you say. Although I don't know much about any of this, I do know that it's a bad idea to only go with one stock. And regardless of whether I've missed the boat, I still would like to invest in Apple because it's a company that I firmly believe in.
     
  4. zimv20 macrumors 601

    zimv20

    Joined:
    Jul 18, 2002
    Location:
    toronto
    #4
    you're welcome

    the best way to support a company you believe in is to buy their products and services. still -- being a shareholder is a cool thing, so if you're not worried about the return, then go for it. cynically, i'll say that, someday, it'll be back to where it is today :)

    i think there's a certain amount of "getting it out of your system" w/ stocktrading. the advice above (which is certainly not my unique advice) was hard won. i made some decent gains, made some moderate losses, then a spectacular loss after a spectacular rise -- i got greedy. happily, it's out of my system now. and i had some nice losses to write off against future gains.
     
  5. scem0 macrumors 604

    scem0

    Joined:
    Jul 16, 2002
    Location:
    back in NYC!
    #5
    I'm going to echo some previous points and hopefully make some new ones.

    • Diversify your portfolio - If your portfolio has 1 company's stocks in it, your are much more likely to lose a lot of money.
    • Don't invest with your heart, invest with your head - Investing in Apple might not be such a good idea. Yes, they have had good success lately, but that might not last. It would be better to invest in a company who has shown steady upward trends.
    • Don't listen to everything you hear. I'm sure the people who listened to the stock analysts who told them to invest in Enron would back me up on this one. Some analysts are even paid to say things.
    • Do a lot of your own research.
    • Try to invest in a company you know a lot about. Apple might be a good choice for this. For example, if anyone knows that Apple isn't going to do well in the next quarter, it would be an Apple fan. Especially on a rumors site like this. If we get a solid rumor from a good source saying that IBM won't be able to supply 3Ghz+ G5's until early 2006, you might want to sell some of your stock, because that probably means that they won't be earning much money from their desktops. This is assuming the success of their other products maintains their respective trends.
    • Try to invest in mid to large cap companies because they are more stable.
    • Try to not only diversify between companies, but between fields. If you had a lot of money invested in 100 different .com's before the .com bust, you still would have lost money. Try to get some stock in the food industry, the energy industry, the computer industry, etc, etc, etc.
    • I'd go for low-risk long term investments.
    • wrigley's sends dividends of gum every winter if you invest in them. I don't know if there is a minimum for this, but it would be cool to get a bunch of gum for owning 1 share :D. It is a pretty large box fo gum too. My friend has a good amount of money in Wrigley's, that's how I know :).
    • don't invest for stupid reasons like the point above. :p ;)
    scem0
     
  6. pseudobrit macrumors 68040

    pseudobrit

    Joined:
    Jul 23, 2002
    Location:
    Jobs' Spare Liver Jar
    #6
    Funny that you use the word "investment" in your first post.
    Before continuing in the investment world, I'll give you a checklist of things I'll assume you're already doing:

    • Maxing out your Roth IRA allowance of $3000 a year
      Maxing out your 401(k)
      Pumping a bit of money into a mutual fund.

    Once you're doing these things, then it's okay to start thinking about individual stocks, with a major caveat:

    Buying single company shares is not an investment for a middle class budget.

    It's either
    a) a novelty, where you should view it as the purchase of some trinket or antique furniture. Someday the trinket or furniture may be worth more than when you bought it, but you didn't buy it for that reason.
    b) a gamble, where you should view it as a wad of cash you take to Atlantic City or the racetrack, expecting to lose most of it while having some fun with the chance that you may hit the jackpot.
     
  7. Xtremehkr macrumors 68000

    Xtremehkr

    Joined:
    Jul 4, 2004
    #7
    Spend some time on the Motley Fool website. Pay attention to the Business Section of your Newspaper. Investigate investment strategies. And start threads like this one.
     
  8. Sun Baked macrumors G5

    Sun Baked

    Joined:
    May 19, 2002
    #8
    If you see HUGE growth in Apple's revenues going forward, it would be a good time to jump on.

    However, if you see the growth in Apple's stock as it being a marketing darling at the moment -- ie, the stock of the hour. Don't jump on it, since these stocks fall into disfavor and off the cliff.

    Flip a coin, Apple could be either one...

    ---

    In general the rocketships should be short rides and something you sell when it meets your target sell price.

    And a lot of Apple insiders have been unloading, the Form 4s (statement of changes in insider ownership) probably outnumber the rest of the SEC filings 23 to 2 right now -- looked, and it's darn close to that for the last 100-125 SEC filings for Apple right now.

    It's not that they think the stock will fall, they're probably locking in profits to diversify their holdings -- since the I'm rich and think I can get richer type of thinking, usually leads to underwater options.
     
  9. topicolo macrumors 68000

    topicolo

    Joined:
    Jun 4, 2002
    Location:
    Ottawa, ON
    #9

    Spymit007
    Good points scem0, but I have to say that avoiding all risk is not the best way to invest. One of the most fundamental laws of investing is that the amount of risk is proportional to the amount of reward.

    By going only for low risk investments, you risk underperforming the market averages (Dow Jones Industrial Average, S&P500, NASDAQ, etc) and if that were the case, you might as well buy an index fund and save yourself a lot of brainpower.

    The important thing to evaluate before investing is how much risk you can tolerate. If you're young and have many years of productive work ahead of you, you can handle more risk because you're not screwed if you lose a lot now but if you're closer to retirement, you need to protect what you've earned and try to cut down on the risk. In the end though, the amount of money you make in the market is also related to the effort you put into doing your research.

    Xtremehkr was right about The Motley Fool. It's a great site to start off on. Finally, I would read a lot and play around with paper portfolios a bit before jumping in. You really really need to understand what you're doing before throwing your money into all that chaos--unless you hate the idea of having all that extra money sitting around
     

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