Apple (AAPL -0.60%) went public in December 1980, and the stock has soared to unseen heights over the last 40 years. The company attained the largest market cap in the world at $2.7 trillion by consistently making quality products that garnered immense brand loyalty from consumers.
Its stellar stock growth over the years might suggest the best time to invest in Apple was a long time ago. But consumer tech is an ever-evolving market, with the company's dominance likely to provide gains for years to come. Meanwhile, growing ventures into markets like digital services, finance, and virtual/augmented reality (VR/AR) diversify its business and allow it to profit from the development of multiple industries.
Here's why it's not too late to buy Apple stock.
A history of consistent gains
Apple shares climbed about 282% in the last five years, and 960% over the last decade. The reliable growth has given it a reputation for being one of the safest investments around, with exceptionally low volatility.
For instance, in the first quarter of 2023, the company reported its first quarterly revenue decline in years and missed analyst expectations by $4.5 billion. However, its stock has still risen about 12% since its earnings were posted on Feb. 2, with investors trusting its long-term growth.
And when the company's stock does dip, it's rarely down for long, with Wall Street rushing to take advantage of the buying opportunity.
Moreover, consistent growth has led Warren Buffett's holding company Berkshire Hathaway to make Apple over 45% of its portfolio. Since that investment in 2016, Apple shares climbed 547%. Meanwhile, Buffett's company is continuing to grow its 5.8% stake in the MacBook maker, buying more stock as recently as this past February.
Apple's market dominance led to consistent and reliable growth over the long term, solidifying its position as a compelling stock.
Nearly unrivaled brand loyalty
Last month, Buffett said, "If someone offered you $10,000 to never buy an iPhone again, you wouldn't take it." While surprising, the statement rings true for many consumers who would willingly switch brands of other devices before straying from Apple's smartphones.
This immense loyalty gave the company a massive advantage when entering new markets. It has a leading market share in tablets, smartwatches, headphones, and smartphones despite other tech companies leading those industries before Apple entered them. As a result, the company can charge a premium for its products, which partly safeguards it against short-term market headwinds.
According to a Bloomberg report, Apple is gearing up to enter the VR/AR market this June with the release of a new headset. If the company's past success entering new markets is anything to go by, it could soon dethrone companies like Meta Platforms and Sony Group, which are currently leading this quickly expanding $31 billion industry.
Apple's potent brand also boosted its efforts in the world of finance and digital services. After launching a credit card in 2019 and a buy now, pay later program earlier this year, the company recently unveiled its first savings accounts. The new service has been a hit so far, with consumers depositing nearly $1 billion into its accounts within the first four days.
Apple has become a behemoth in the tech market, allowing it to expand into a wide variety of industries, which diversified and strengthened its business. The company's history of consistent stock growth and immense brand loyalty will likely keep it growing for decades. And with that, it's definitely not too late to invest in the stock for the long term.
