Featured Posts

The Tree of Happiness There is no nexus between a tree and your happiness. At least, that's what I believed until I learned about the tree of happiness -- Albizia. Chinese call it a tree of happiness. It bends in the winds but doesn't break. Interesting. I call it perseverance. How... Read more

The Simple Path to Wealth One of the cornerstones of this blog is the fact that you need to achieve financial peace so that financial worries can't rob your happiness. Everything we do is for one and only one reason -- to be free and to be happy. A street smart person knows how to... Read more

Why Trump Will Be the Next President After winning primary in the Hoosier State, Donald Trump has been declared the presumptive nominee of the Republican party. Pundits declared that he can't win against the Clinton political Juggernaut. May be. But I don't agree. While most polls show Clinton... Read more

The White Coat Investor: A Book Review I admire physicians. I am not a physician but I have been fortunate to work with several smart physicians. Physicians are naturally bright professionals as I have seen them learning technology and even programming even though that is not their core focus. On... Read more

Why Apple is still a good investment   You don't have to be a pro to understand why Apple is still a good investment; in fact, you are better off being a motley fool even if you watch CNBC. On Jan 28, 2015 Jim Cramer called it an investment of lifetime; a stock that will rise again this... Read more

Diversify...Really?   It's OK to have your eggs in one basket as long as you control what happens to that basket. -- Elon Musk It sounds oxymoronic but the fad in the personal finance industry is to promote diversification. Ironically, most of us are really bad at diversification... Read more

Wela: An Interview with Wes Moss With the advent of the Internet, our lives have changed forever. Amazon is redefining how we buy anything including pencils to power tools. Whether you like it or not, wealth management has also begun its inroads on the Internet. The brilliant idea that you... Read more

How to Invest in Stocks like a Pro   Let's face it -- most of us, mere mortals, consider investing ourselves in a stock market akin to playing Roulette in Las Vegas! If you have similar thoughts then you are not alone! According to Henry Blodget, one time super star Internet stock expert,... Read more

Why I still Invest in Apple   Let's face it -- most of us are Apple investors. If you deny, look at top ten holdings of any mutual fund that you own. Unlike old superstar stocks of the past -- Intel, Microsoft or Dell to name a few -- there is something unique about Apple. It has... Read more

lnvestment Lessons from Warren Buffett Games are won by players who focus on the playing field – not by those whose eyes are glued to the scoreboard. If you can enjoy Saturdays and Sundays without looking at stock prices, give it a try on weekdays. -- Warren Buffett While Warren Buffett... Read more

Is Tesla Still a Worthy Investment?   "Is Tesla still a worthy investment?," asked a friend of mine who read my article which I wrote back in June of last year. A lot has happened since then. Tesla stock has doubled in price and Elon's presence in the media is omnipresent. This guy is... Read more

Year 2013: My Favorite Personal Finance Articles It is hard to believe but, indeed, year 2013 is in the box. For stock investors, it was a banner year. Nasdaq finally climbed back to its old highs and other indices performed brilliantly as well. While pundits on the Street may have tried their best to... Read more

Get Free Articles!

Proud Member of Yakezie

4 Investment Lessons for Financial Success from Apple

Imagine  that you own a company that makes more money in a quarter than GDP of 105 countries on this planet – GDP of Tunisia or Slovenia, and the islands of Jamaica, Iceland, The Bahamas, Haiti, St. Lucia, Maldives, Antigua/Barbuda and Grenada — combined.

Before you nod your head in disbelief, you can do it! Here’s the scoop — buy even few shares of Apple.

Some noteworthy, exemplary facts to know:

  1. Apple’s $46.3 billion is also just under Bulgaria’s estimated GDP of $47.7 million for all of 2010, and is larger than Iceland’s 2010 estimated GDP of $12.59 billion.
  2. The company reported that it sold 5.2 million Macs during the first quarter of the fiscal year, which represents a 26 percent year-over-year growth rate in a PC market that, as a whole, is on the decline.
  3.  Top-line revenue shot up to an astonishing $46.33 billion, a 73% rise from the prior year’s $26.74 billion. Gross margin jumped from 38.5% to 44.7%. Net income soared by 118% to $13.06 billion, which turns out to $13.87 per diluted share


These amazing earnings stats from Apple not only prove that a company can rise from ashes and make awesome products that the entire world loves, but also prove that you can learn to profit from this transformation.

All it takes is an intense desire to learn from the history and apply the knowledge to find an awesome company.

In fact, most investment lessons that you can apply to find a great investment relate to principles that are dear to all of us in the world of personal finance  —  owe no debt, have lots of cash, deliver incredible products or services.

1. Apple has no debt

It’s great that Apple has no debt yet it is the largest company in the world in terms of market capitalization. And, Apple sits on incredible amount of cash. This is the direct result of one and only one thing — delivering awesome products, far superior than its competitors.

As an investor, invest only in the company that dominates its niche. It has to be the top dog by wide margin.  Apple proves that it is the top dog by its sales growth overseas — sales in Japan jumping by 148%; Europe and Asia Pacific were neck and neck with 55% and 54% revenue growth, respectively.

We all know that prime motive for anyone seeking  financial freedom is to become debt free. Debt free life allows you to pursue your life purpose without worrying about money to keep up your lifestyle. That applies to these invisible companies as well. Apple can maintain its dominance by innovating and delivering amazing products without worrying about incurring any more debt.

2. Apple is stupendously rich

Apple is stupendously rich with $97.6 billion in its coffers. Cash is king. Companies with huge pile of cash can easily have a major competitive advantage over those that are in debt. In fact, if you consider over $100 per share in cash that Apple has, it is a stock Warren Buffett would love to buy. And if Apple decides to pay dividend then it will attract a slew of investors to grow its fan base. Or Apple can acquire companies that fit well with its growth strategy.

3. Right brainers will rule the world

This is the most important investment lesson I learned by investing in Apple. If you revisit 1996 — Apple was facing financial crisis. It was on the brink of bankruptcy. I still vividly remember watching news that Steve Jobs borrowed money from Bill Gates to spring life back into the company he created years ago.

Steve Jobs was a creative genius. And, it is apparent — from Apple’s incredible journey so far since he took over its rein in 1996 — that amazing things happen when you start using your right brain. His imagination created a new market for products that are making a great deal of money for Apple — iPhone, iPad.

Apple’s success lies in its ability to create  products that are not good or great but simply awesome.

4. My personal finance lessons from Apple

As a devout personal finance student, I try to apply investment lessons learned to  improve my financial habits.

With Apple’s stunning rise,  akin to a rise from ashes of the Phoenix, I believe that you can achieve amazing financial feat by committing to — become debt free; save money by being frugal; and, most importantly, use your right brain to deliver awesome product or service that the entire world loves.

It remains to be seen if Apple can continue this saga without Steve Jobs. So, as an investor, never stay too complacent. Companies have life cycle like humans do. Some die right after the birth, and some achieve amazing success by making awesome products, but all good always attracts more competition. So, somewhere in this world, I am sure that another Steve Jobs has born to pose challenge for Apple.

These investment lessons led me to believe that you can become financially astute by investing in a company that — is the top dog in its niche; has no debt; has a pile of cash; and, runs by right brainers. That’s the simple recipe for success.

What you’ll read now is very profound for your personal growth. It proves that anything is possible with focus and dedication.

I really didn’t know what to do for a few months. I felt that I had let the previous generation of entrepreneurs down – that I had dropped the baton as it was being passed to me. I met with David Packard and Bob Noyce and tried to apologize for screwing up so badly. I was a very public failure, and I even thought about running away from the valley. But something slowly began to dawn on me  I still loved what I did. The turn of events at Apple had not changed that one bit. I had been rejected, but I was still in love. And so I decided to start over.

Steve Jobs, about getting fired from Apple,  at 2005 Stanford University commencement speech

I’m pretty sure none of this would have happened if I hadn’t been fired from Apple. It was awful tasting medicine, but I guess the patient needed it. Sometimes life hits you in the head with a brick. Don’t lose faith. I’m convinced that the only thing that kept me going was that I loved what I did. You’ve got to find what you love. And that is as true for your work as it is for your lovers. Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when you find it. And, like any great relationship, it just gets better and better as the years roll on. So keep looking until you find it. Don’t settle.

Steve Jobs, reflecting on his comeback success with Apple,  at 2005 Stanford University commencement speech


Now, do you see nexus between your financial freedom and personal growth? I’d love to know your thoughts.


Related Posts Plugin for WordPress, Blogger...

Comments (19)

Wonderful article, and very inspiring. Great lessons from the most innovative and creative company in the world.


Thank you. Apart from Apple’s earnings, what amazes me is the power of imagination. Steve Jobs changed the world with his imagination. I think all of us have same gift; we need to believe in our own ability. We can do anything that we conceive and commit to achieve.

Nice distillation about Apple’s performance and what was the key to it. I try to keep away from investing until lately. It becomes more and more interesting if not viable option for me, so tips like this article are helpful, thank you.


The best part of capitalist system is that everyone can invest in best of the companies to become wealthy. :)

Apple’s growth rate and financial positions are stupendous. It’s hard to hold a candle to what they have accomplished. I do think there are plenty of lessons we can gather from Apple. I love that they have no debt. Thanks for reminding me of that fact!

It’s hard to fathom the fact that a man with vision can create wealth of this incredible magnitude. It shows the power we all have to exercise and get whatever we want out of this beautiful life.

Very good article. Inspiring.
Keep writing.

Thank you Hemant for the kind words.

I love that Apple is so cash-rich. But I wonder if its stock is overvalued?

Apple now has $104 cash per share. So, if you deduct that amount from the current stock price of $447, stock is currently trading at $343. At that price, Apple is trading at trailing P/E ratio of less than 10. That’s way safe for a company that’s growing EPS at more than 68% for last three years. But, you should invest only if it fits your investment style.

Great article! Apple is a company we can all learn a lot from, both financially as well as professionally. My only gripe with Apple – that I didn’t buy more of their stock last year when I had the chance!

Indeed, we can learn a lot from Apple’s history for our own personal and financial growth.

Above all, Apple has no debt (like you mentioned). Especially in recessions, cash is king.

I am a big fan of Peter Lynch and his simplistic view of investing. I love Apple because I love iPhone, iPad2 and Macbook Pro. And, I love companies with loads of cash. :)

[…] is my favorite stock. If you are a value investor — and get inspired by the wisdom of Warren Buffett — Apple […]

[…] foremost goal is to invest safely. I’d rather invest in high quality, blue chip stocks like Apple, when market conditions improve and stock is on its way […]

With me being a novice in the field of ivesting in stock, what must i do first to get my feet wet?

[…] believe that quality of management plays greater role — when it comes to groundbreaking, up and coming companies — in […]

[…] stocks of the past — Intel, Microsoft or Dell to name a few — there is something unique about Apple. It has brand loyalty that is unlike any tech companies of past or the […]