Apple Stock Has Made Investors Rich for 20 Years — What Happens Next?

Core Viewpoint - Apple's stock has experienced significant growth over the past 20 years, but concerns about its future growth potential have emerged as it transitions from a high-growth startup to a mature company [1][2][3]. Company Performance - Over the last 20 years, Apple's stock has grown by 15,308%, delivering an annualized return of 28.63% [1]. - Apple is currently the third largest corporation in the world, with a market capitalization of approximately $3.7 trillion [2]. Growth Expectations - Analysts warn that Apple is now a slow-growth company, with expectations of disappointing returns for shareholders in the coming years [3]. - As of 2025, Apple's stock has returned nothing and only offers a small dividend [3]. Market Exposure - Apple constitutes a significant portion of many index funds and ETFs, making up 6.14% of the S&P 500 and 11.39% of the Nasdaq 100 [4]. - Broad market ETFs like VTI also have Apple making up over 5% of their portfolios, leading to potential overexposure for investors [5]. Investment Caution - Investors are advised to be cautious about holding too much individual Apple stock due to its heavy representation in broader funds [6]. - Warren Buffett's Berkshire Hathaway has been selling off Apple stock, reducing holdings by more than half, indicating a shift in investment strategy [6]. - Current forward Price/Earnings (P/E) ratio for Apple is 29, with some analysts suggesting a target P/E of 20 for a more favorable investment [6].