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Apple Stock: Past Glory, Future Doubts?
20 Nov
Summary
- Apple stock saw 15,308% growth over 20 years.
- Experts caution that Apple's explosive growth phase is over.
- Apple comprises over 5% of broad market ETFs, risking investor portfolios.
Over the past twenty years, Apple's stock has experienced phenomenal growth, yielding a remarkable 15,308% return. This impressive performance has averaged an annualized growth rate of 28.63% for investors. Despite its history of delivering significant value, recent analyses suggest this era of rapid expansion may be drawing to a close.
Financial experts now characterize Apple as a mature corporation rather than a startup, noting its substantial market capitalization of around $3.7 trillion. Vince Stanzione, a stock trader, advises that investors should not anticipate continued high growth from this tech giant. He points out that the stock has shown no returns so far in 2025 and offers only a minimal dividend, indicating a potential shift towards slower growth.
The sheer size of Apple means it significantly influences investment portfolios. It constitutes a substantial percentage of major index funds like the S&P 500 and Nasdaq 100. Financial planner Jay Zigmont cautions that excessive individual holdings in Apple, combined with its presence in broad market ETFs, can easily lead to over 10% of an investor's total portfolio being concentrated in this single stock. This concentration poses considerable risk, prompting some, like Warren Buffett, to reduce their Apple holdings.
