Apple shares

Apple shares reached another all-time high at over USD 148 per share. With a market capitalization of over USD 775bn, Apple could become the first company to reach a trillion dollars in value, a mile-stone that evaded companies such as Cisco or Microsoft at the heights of the dot-com bubble. Apple is a well-managed company and its products are widely viewed as of great quality. So what could go wrong? The main concern with Apple is that is not selling luxury good, but consumer electronics for which features get quickly copied by rivals and for which cost prices continue to drop fast.

Laptop computers used to sell for over CHF 2’000. Today you can buy them below CHF 300. Apple’s margins of 70% on phones are not sustainable. Regardless of what growth they can achieve in their other products, the margins on their phones will probably decline in the future. If margins of iPhones were to converge with industry levels, profits would plunge and so Apple shares. Trees don’t grow forever, and apples drop on the ground.

This is not a recommendation but just our opinion. Please consult with your financial advisor before investing!

Benefit from transparent pricing, budgeted services, fees directly negotiated by LGH FS with its various service providers

Contact us

Our latest articles

  • All
  • Conseils Spéculatifs
  • Gestion De Fortune
  • LGH
  • News
  • Speculative Advice
  • Tax Regularization
  • Wealth Management
  • Investors often distinguish between high growth companies ("growth stocks") and defensive companies ("value shares"). The purpose of this distinction is to take into account the expected future growth in the frame of the valuation of the share price. Indeed, this is the only realistic way to compare a growing company with a company whose business
    Read More
    • Speculative Advice
  • Intuitively, changes in company shares should follow changes in company profits. The more a company grows its profits, the greater the creation of shareholder value should be. However, interest rates and injections of liquidity by central banks have distorted this relationship between earnings and stock price development. Here are some examples of well-known values.
    Read More
    • Speculative Advice
  • Since the late 1970s and early 1980s, many developed countries have not experienced inflation. To the contrary, inflation rates have kept falling, dragging interest rates lower. Forty years of disinflation This phenomenon of "disinflation" can be explained by three factors. The first factor is the demographic trend marked by a drop in the number of
    Read More
    • Speculative Advice
load more hold SHIFT key to load all load all

30 years of experience in asset management

Personal and privileged contact

Direct access to private placements

Affiliated with the