Reaching Stock Nirvana
Hello, I'm Matt Harrison.
I'm the newest contributing editor to Park Avenue Digest.
And today, I want to talk to you about Apple because we're currently witnessing an unprecedented milestone in the market.
Apple recently became the first publicly traded U.S. company to reach $1 trillion in market capitalization.
To put that into perspective, if Apple were its own stock exchange, it would be the 17th largest stock exchange in the world.
It would also be the 16th most valuable nation in the world.
It's been a race between tech giants. Many investors had speculated that Amazon, which passed the $900 million mark last July, would be the first company to cross the $1 trillion threshold.
But Apple already had a head start. It hit $900 billion last November.
Apple has amassed the kind of wealth that's impossible to imagine or even visualize.
$1 trillion is a sum of riches that would make the treasures of King Tut's tomb or the spoils of Alexander the Great look like chump change.
But Apple CEO Tim Cook won't weep because there are no more lands to conquer. He'll keep on truckin' and cement Apple's place as an American tech dynasty.
And how did it do it? How do companies like Apple and Amazon reach such incredible heights of wealth?
Well, the answer isn't simple. But it is all around us...
I was in the Verizon store in east Boston, due for a new phone update, and the sales guy was trying to sell me on the new Samsung. And honestly, he was doing a good job.
"It's got a bigger screen, it's more durable, has more data, better graphics, and a longer lasting battery than any iPhone on the market."
But I replied, with tender resignation, "I’m sure it's better than my iPhone. But when I'm at a buddy's house and am looking for a charge, nobody's gonna have a chord for whatever that Samsung is."
And the sales guy in the red polo just sighed because he knew I was right. And he knew he wouldn't be getting a commission on that Samsung sale. I'd be walking out of there with whatever iPhone upgrade my contract allowed.
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And why was that? It's because tech companies like Apple and Amazon have realized that tech ecosystems are the most powerful positions in their industries.
I'm sure you know people who have an Apple watch, an iPhone, and an Apple TV at home. They have their family pictures on the cloud, and they're content because all their devices work in tandem with one another.
Amazon has created a similar bubble. The world's largest book distributor has also become the largest publishing house. And this is a deadly combination that wreaks havoc on brick-and-mortar bookstores, which even keeps the big guys like Barnes & Noble on their toes.
Amazon has developed into a publishing titan, a movie studio, a video game lobby, and a grocery store giant.
But Apple was still the first to cross that $1 trillion finish line. And that's because, even more so than Amazon, it's become ingrained with so many aspects of American life.
We're used to seeing close-ups of iPhone texts on movie screens. For years, iTunes was considered the primary source for music streaming. And you'll see more Macs in a college lecture hall than anything else.
Now don't forget, Apple was originally a company that only produced desktop computers, and Amazon used to be solely a shipping company.
The evolution of these tech giants might seem random, a throw of the die and your company is a part of every facet of American consumerism. But the truth is far simpler...
You can identify the big guys before they reach the stock nirvana of $1 trillion. And it may be easier than you think.
You just need the right template to find the big guys before they boom…
Charles Mizrahi added Apple to Park Avenue Investment Club’s portfolio on December 28, 2012, at $65.57 per share. Apple's shares are now trading for $217.58, which is a gain of 231.83%.
And discovering those kinds of stocks before they become household names is the exact sort of technique that you'll learn in Charles Mizrahi's new book, Hitting Wall Street's "Fat Pitch."
If you haven't given it a read, check it out now.
Contributing Editor, Park Avenue Digest