3 reasons I’d buy Warren Buffett’s top stock today

first_img Edward Sheldon, CFA | Monday, 3rd May, 2021 | More on: AAPL Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. “This Stock Could Be Like Buying Amazon in 1997” Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 3 reasons I’d buy Warren Buffett’s top stock today Simply click below to discover how you can take advantage of this.center_img Enter Your Email Address Image source: The Motley Fool Edward Sheldon owns shares in Apple and Alphabet. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Alphabet (C shares) and Apple and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Billionaire investor Warren Buffett’s largest holding, Apple (NASDAQ: AAPL), has performed well in recent years. For example, since I wrote about the stock in November 2018 (I said it had the potential to deliver ‘spectacular gains’, by the way) it has risen about 200%.Is Apple stock still worth buying after that kind of share price rise? I think it is. Here’s a look at three reasons I’d buy Apple shares for my portfolio today.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Apple: incredible growthThe first reason I’m bullish on AAPL is that the company appears to be in the middle of a ‘supercycle’ for a lot of its products. There’s been a lot of talk recently about Apple potentially benefiting from a huge 5G ‘upgrade cycle’ where consumers trade up to 5G-compatible handsets.However, the company’s second-quarter results for the period ended 27 March suggest there’s more to the upgrade growth story than just the iPhone. Other products, such as the iPad and the Mac, are seeing enormous growth too. In Q2, these two products saw year-on-year revenue growth of 79% and 70% respectively. Overall, revenue was up 54% year-on-year. That’s an incredible level of growth.Huge services growthThe second reason I like Apple stock is the growth in the high-margin services division. This division includes iCloud, App Store, and Apple Music. In the last quarter, revenue was up 27% year-on-year to $17bn.Looking ahead, the growth potential here is significant, in my view. With Apple charging a 30% commission on many paid apps and in-app purchases, the company looks set to generate hundreds of billions in revenue from services over the next decade.Massive share buybacksFinally, Apple continues to buy back a ton of its stock. Last week, the company said it had authorised $90bn in share buybacks. That’s significantly higher than last year’s $50bn outlay.Share buybacks reduce the number of outstanding shares in the market and increase the value of the remaining shares (because earnings per share become higher). So this massive buyback should help Apple’s share price over time.ValuationTurning to the valuation, I continue to think Apple’s price tag is reasonable. Currently, the stock trades on a forward-looking price-to-earnings (P/E) ratio of about 30. That’s not a bargain. However, I don’t think it’s excessive either.I’d buy Warren Buffett’s top stock todayOf course, there are risks to the investment case here. One is the global chip shortage, which is impacting a lot of technology companies. Apple said last week the shortage could cost the company $3bn-$4bn in lost revenue this quarter.Another is in relation to the App Store. Recently, Apple has been challenged by lawmakers and companies that say its App Store has too much power and costs too much.It’s also worth pointing out that Apple operates in a very competitive industry. Competitors (like Samsung and Google) are always trying to steal market share.Overall however, I believe Apple continues to have a lot of investment appeal. I’d be happy to buy this Warren Buffett stock today. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. See all posts by Edward Sheldon, CFAlast_img read more

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Tameside student win Hovis scholarship

first_imgThe Hovis Scholarship Award has been given to Gabrielle Baxter from Tameside College, who will get the chance to obtain first-hand bakery experience working with industry professionals. The scholarship, created by Rank Hovis, is awarded to one student a year for an all-expenses-paid learning experience. Baxter underwent an interview for the award, in which she discussed her progress to date and career aspirations.Baxter will start work at Southampton Mill, which specialises in flour testing and milling. She will be assisted by Christopher Foxall, a representative from Premier Foods, during her scholarship, which will see her travel around the UK, visiting bakery institutions including flour mills, testing centres and local independent bakeries, as well as larger chain bakeries. The trip concludes in Lichfield, where Baxter will learn about healthy food production at Holgran.“Gabrielle is the first student from the college to win the scholarship award and the entire bakery department is very proud of her achievements. She has won many competitions since starting at the college and I’m sure she’ll continue to excel,” commented Tameside bakery tutor Lorna Jones.last_img read more

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