Yahoo Finance is answering your top 10, most-asked finance question of 2014 based on Yahoo search. The number one thing you wanted to know was, “Should I buy Apple stock?”
I’m not surprised you’re interested in owning a piece of Apple (AAPL). It's the most valuable company on earth. It might actually be the single most valuable non-governmental entity in the history of mankind. And I’m only sort of kidding.
At the time of this writing, Apple has a $650 billion market cap. For some perspective, if you combine the GDPs of Greece and Egypt… you’re still more than $100 billion shy of Apple’s market cap. And keep in mind that we’re not talking about hypothetical value. Apple has more than $150 billion dollars of cash on hand.
But none of this gets at your original question: Should you buy the stock. Apple stock gained more than 40% in 2014.
This was the year during which CEO Tim Cook (finally) stamped his name on the company and moved to distinguish himself from Steve Jobs. The iPhone 6 and 6+ came to market. The iWatch didn't.
Whether or not you should buy Apple shares, then, depends on how important you think the lack of anything particularly earth-shatteringly new out of Cupertino is.
To quote the terrorist Hans Gruber from Die Hard, "When Alexander saw the breadth of his domain he wept for there were no worlds left to conquer.” He could easily have traded “Alexander” for “Apple.” The company simply owns the consumer space. There's nothing left for them to do.
I love Apple, I own shares, but I'm not sure I would add to them here. Even dynasties need a breather. History suggests patience is a virtue, even on Apple. If the shares get back under $100 it'll be a more than 10% correction. Then you'll have my blessing. Until that day... it probably won't kill you to wait.
More of your top finance questions answered:
Number 2: What's your 2014 tax bracket?
Number 3: How to start a business
Number 4: Should you refinance your mortgage?
Number 5: Can you buy a house with bad credit?
Number 6: Should you buy Facebook stock?
Number 7: Why are gas prices going down?
Number 8: Who is the richest man in the world?
Number 9: Is social security taxable?
Number 10: What is Bitcoin and how does it work?