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Welcome everyone, thank you for 
joining. 

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And today's video we're going to
be talking about Apple, Apple's 

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a company that right now trades 
at one. 

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Sixty one point nine per share. 
So about a hundred sixty two 

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dollars per share and apples. 
A company, a stock that is going

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to be trading at $250 per share,
according to Gene, Munster, he 

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is an apple analyst. 
This type of change from 160 

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currently to 250 would be around
55% upside. 

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So That's a significant amount 
of upside. 

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Now he believes this is going to
happen over just the course of 

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the next year, or so, and Gene, 
Munster, so far has been pretty 

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accurate with his predictions on
Apple. 

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So, in this video, we're going 
to look at an interview with 

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Gene Munster. 
We're going to react to what he 

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has to say. 
You went on the CNBC, and 

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explained his thesis for it. 
I'll share my thoughts along 

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with what he says, as well as my
thoughts on their latest event. 

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Apple just recently had their 
Peak Performance Event, where 

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they launched a few new 
products, they have their new 

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chip, the M1 old Which is this 
massive chip that, of course, 

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has these incredible specs with 
it. 

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They have the Mac Studio, the 
studio display, they have a new 

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phone color for the iPhone. 
That's is kind of cool green. 

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They have a new starter iPhone 
that has actually their best 

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iPhone chip in it. 
So overall we have a lot to get 

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into, we're going to go over 
apple as an investment. 

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The potential upside, the 
potential downside and why I 

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continue to hold this company. 
Even though I'm significantly in

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the green on it, I've already 
made good gains on it, but I 

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continue to hold it and I plan 
on On explaining why. 

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Now, as always before we jump 
into Apple in the analysis, 

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there I have to give a quick 
portfolio update. 

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This is my tech portfolio called
the story fund and I give 

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updates on this transparently 
every single week week by week. 

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So if you subscribe to the 
channel, you can follow along 

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with the progress of this 
portfolio completely transparent

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on a weekly basis. 
The reason I do that is because 

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so many content creators, don't 
really show transparency. 

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They don't show what they're 
doing. 

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They don't show their 
Investments and how they're 

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really performing. 
They just give generic advice 

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and the only highlight Their 
Investments when things are 

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going well. 
So, on this channel, you see the

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full picture. 
You see, when we're in the red, 

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you see, we're in the green and 
everything in between. 

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So I'll continue to give 
updates, you can subscribe and 

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follow along for free now. 
So far right now, the portfolios

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in the red overall by twelve 
thousand one hundred dollars, so

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it looks really ugly. 
But just today, we're up for 

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thousand dollars three point 
nine percent in the green. 

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So we're having a very good day 
and if we have more of these 

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type of days, where the the bear
Market kind of comes to a Close 

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and we get back into bullish 
mode. 

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I think a lot of these companies
will really take off, that's 

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kind of what I'm waiting for. 
So, in the meantime, I'm waiting

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patiently. 
Now if I Benchmark this against 

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the S&P 500, my portfolios, the 
blue line and the S&P 500 is a 

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red line. 
So you can see a couple months 

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ago when the the real correction
and bear Market really started 

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to happen. 
Both of them traded down, but 

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tech companies, got hurt more. 
Now, just to further illustrate,

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how difficult it's been to pick 
different tech, companies to 

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invest in recently, Look at the 
depth finder, which is a tool I 

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developed for Patron members. 
You get this included as a 

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patron. 
This shows you, if any companies

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in a dip or in a price surge, if
the bar is below the x-axis, if 

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it's below zero like twilio hair
and Spotify and Facebook, that 

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means it's in a dip and the 
lower, the bar, the bigger, the 

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dip. 
So Facebook is 42 percent below 

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its 200-day, moving average. 
Now, if we look at every single 

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company in the story fund, all 
of them are in a dip Cept for 

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one. 
There is one exception which is 

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Apple. 
This is the only company that's 

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above its 200-day, moving 
average out of every single one 

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that I'm investing it. 
Most of them are in a dip and 

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most of them are in a 
significant dip. 

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So, looking at this overall, the
market environment isn't one, 

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we're going to be doing well 
investing in tech companies. 

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It really doesn't matter what 
you pick, so if you're a tech 

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investor or you have a tech 
portfolio, you just have to be 

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patient. 
You have to wait until the fear 

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turns, to Greed, until these 
companies start to get back in. 

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Pull mode, investors, become 
bullish again and the price is 

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eventually will go back above 
their 200-day moving average. 

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There will be bullish sentiment 
eventually with these companies 

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but in the meantime, you have to
be patient and that's what I 

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plan on doing now. 
Let's go ahead and move on to 

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Apple like I outlined. 
Apple is one of the few 

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companies. 
In fact it's the only one right 

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now that's not currently in a 
dip. 

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In fact if we look at the past 
five year performance of Apple, 

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it's been pretty incredible. 
It's up three hundred and sixty 

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six percent. 
You've Over three times your 

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investment three and a half 
times over the past five years 

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and that's excluding dividends, 
which apple pays dividends the 

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entire time. 
So factor that into the 

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compounding, your returns are 
even better. 

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Now, a lot of people, look at 
these type of graphs and they 

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say that the company's done so 
well, it's already done so. 

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Well, it's already at such a 
high stock price 162 after their

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stock split, the market cap is 
two point six five trillion 

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which is just an in 
comprehensible number, the gains

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are probably behind it, right? 
Apple doesn't have. 

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Much upside left. 
Well, that's what we're going to

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examine how much upside does 
Apple have left. 

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Because over the past five years
is returned three hundred and 

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sixty six percent. 
But if we look at Apple right 

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now, if we go into this company,
we can look at some of the 

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fundamentals here and evaluation
Apple only trades at a 27 PE 

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ratio. 
So even though the stock has 

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gone up multiples, three or four
times over, just the past five 

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years, it's still trading in the
mid-20s P/E ratio, and that 

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seems pretty incredible the 
valuation. 

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Is somewhat reasonable for a 
company that historically has 

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absolutely crushed the market. 
So apples are two and a half 

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trillion dollar market cap 
company. 

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It trades at a mid 20s PE ratio.
And in my opinion, it has a 

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solid mode, but looking at 
Future growth and how this 

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company is going to continue to 
give shareholder value. 

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That's the big debate. 
And one person that I like to 

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get his perspective on is Gene 
Munster. 

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Who's an analyst at covers 
Apple. 

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Here's a recent interview. 
He did on, CNBC, check out some 

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of the key highlights from 
today's Apple event, Tim Cook 

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announcing a new budget iPhone, 
New iPad Air, a brand new Mac 

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featuring apples and one, Ultra 
chip. 

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And a host of new colors for the
iPhone 13. 

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But the big event failed to woo.
Investors Apple finishing more 

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than one percent lower, its 
fourth straight down day for 

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more. 
Let's bring in one thing I'll 

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note is, rarely do I see Apple 
stock just sore after an Apple 

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event? 
It always takes time for 

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investors to realize what's 
going on for whatever reason. 

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I never see them loud after an 
event in Apple stock soaring 

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upwards. 
In fact, usually Apple stock 

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moves up like A couple months 
after an Apple event Loop 

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Ventures, partner, Gene, Munster
Jean, I don't know, it didn't 

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seem that exciting. 
Any of these things that seem 

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kind of iterative, I mean, the 
chip is a kind of exciting, but 

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other than that, it's a big deal
here. 

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Melissa just to put into 
perspective. 

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It may be constructive, is today
we're talking about 5 to 10% of 

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apples. 
Business is being upgraded that 

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compares to their fall event 
were 50% of the business gets 

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upgraded. 
So by definition, this is going 

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to be a smaller number of the 
products, and I think if we look

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at the products across the 
board, the iPhone SE it, is it? 

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Or if it's a small upgrade but 
it is a price increase. 

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I think that is a critical piece
here that's getting missed by a 

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lot of investors for them to 
actually Is price and their 

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entry level product. 
I think it sets the tone for 

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what their product demand is. 
It's still really hard to get a 

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hold of Apple products. 
Ultimately, so I think that's 

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one of the going to be one of 
the big drivers here. 

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Going forward is what the supply
availability of these products 

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are. 
And I think another piece that 

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gets lost is they keep 
delivering despite all these 

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headlines. 
They keep coming up with these 

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great products. 
Despite the fact that they've 

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been working remote supply chain
issues, and I think that that is

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probably the most important 
takeaway here, is that 

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ultimately Lee, they continue to
be the gold standard when it 

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comes to putting great products 
out and I think again you're 

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right five to ten percent of the
revenue doesn't catch investors 

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attention, but I think it's 
important that they just step 

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back and collectively. 
Look at the body of work that 

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Apple continues to put out. 
So, he mentions that Apple, 

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still delivering, they're still 
doing the same thing, they've 

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always done. 
They don't fall off because of 

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logistics because of working at 
home, and they also continue to 

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have pricing power. 
They raise the prices of the new

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lower end iPhone by 8%. 
So apple is one of the companies

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that inflation goes up 5% 7%, no
problem. 

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They'll raise prices a percent, 
it's no big deal for Apple, they

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have enormous amounts of pricing
power. 

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Now, the next thing that Gene 
goes over is the Fifty dollar 

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price Target and here's this 
breakdown of how he gets there. 

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It is 250. 
It seems like a stretch case 

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here but I want to kind of 
anchor back that if you assume a

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32 multiple on what I think that
they're going to earn next year 

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called 720. 
You get to that 250, their 

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current multiple is about 25 x. 
I think to go and campaign for a

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higher Tech multiple in this 
environment seems like I am out 

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of touch, but I do believe that 
if we, Fast forward three, six 

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twelve months from now. 
Assuming we do get through many 

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of these headaches, I think that
we will see multiple expansion 

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and I I want to pause on that 
point. 

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I think you just said a 32 
multiple on Apple's earnings. 

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That's how he's basing that 
price Target off of next year. 

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32, multiple sounds insane to 
me. 

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I actually do. 
Think this does sound a little 

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bit crazy Apple's trading at a 
27 Ford PE ratio, which many 

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investors think is already very 
high. 

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They look at Apple five years 
ago and they go. 

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Hey, five years ago, the 
multiple is like 15 or 16. 

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It's trading at 27, so apples 
really overvalued. 

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Now, now they're not factoring 
in all the the changes that 

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Apple has done over the past 
five years, expanding their 

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mode, expanding their margins. 
You know, doing all their 

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subscription business, launching
a ton of new products but either

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way, the multiple has expanded 
from a 16 17 to 27 and jeans 

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arguing. 
Now that the multiple is going 

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to continue to expand from where
it is at a 27, all the way up to

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it. 32. 
Now to me that does seem like a 

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little bit of a stretch, a 32 
multiple on Apple, seems a 

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little bit excessive but let's 
go ahead and hear him out. 

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I think what it all keeps coming
back to Karen is that that 250 

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number is really predicated on 
what we're seeing today is 

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Apple's ability to continue to 
put out great products if they 

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do that upgrade existing 
products come out with new 

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products and enter new product 
categories. 

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I feel that this is going to 
continue to surprise investors 

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on the upside Not only with 
earnings but also multiple 

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expansion. 
Jean announced Major League 

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Baseball at some point there 
will be baseball. 

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I think we all can agree on that
but the Holy Grail here is 

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National Football League, does 
that get them closer to the NFL?

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It does and just to put some 
perspective around, this is it 

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is the Holy Grail NFL. 
Major League Baseball is about 

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comparable in terms of 
advertising Revenue versus the 

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MBA. 
And when you think about the 

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opportunity with the NFL, I 
think that that's definitely on 

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the table here and I would put 
it this way, there's a high 

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probability I would say greater 
than 75 percent. 

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In the next one to two years, 
we're going to see a deal with 

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Apple and it's this simple, is 
that content continues to be 

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king. 
Apple is going to spend about 10

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billion in content this year, 
Amazon, about 15 Netflix about 

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20. 
And I think that the biggest 

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opportunity for them really to 
continue to activate a base of 

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pain Subs is through the NFL and
I'll put a little teaser on 

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there too. 
I don't think they're going to 

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stop at the NFL two to three 
years now I think that they're 

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going to do Formula 1. 
It's a sport that I don't watch,

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but a lot of people do and it's 
another example, I think of how 

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Apple can continue to expand 
Beyond baseball. 

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Football and other sports. 
Do you see what Gene is actually

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doing here as an analyst? 
I think this is why he stands 

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apart from a lot of other 
analysts, most analysts are 

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looking quarter to quarter. 
They look at what the earnings 

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are going to be next quarter, 
and then they do a basic PE 

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ratio based off of that. 
That's how they value the 

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company. 
But jeans looking 56 years out, 

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he notes that Apple's getting 
into sports and this is likely 

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to continue because Apple has 
infinitively Deep Pockets. 

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They have major league baseball.
Now, they have that on AppleTV 

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Plus on top. 
Perv a growing library that 

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started off small and kind of as
a joke, a lot of investors scoff

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at it, but a growing library of 
TV shows and movies. 

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They have a lot of content on 
there. 

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Now, that's continually growing.
They're going to go for NFL. 

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He says there's a 75% chance, 
they will have some agreement 

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with the NFL over the next two 
years. 

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Then he doesn't think they're 
going to stop there. 

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He thinks they're going to be 
doing Formula One racing and 

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other events on it. 
I think apples going to continue

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to grow their Apple TV plus 
service far. 

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More than investors are Giving 
it credit right now. 

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Apples, one of these companies 
that I think is the long-term. 

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Compounders the companies that 
have one Revenue generator that 

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seems extremely stable and solid
that they can rely on with 

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apples. 
The iPhone, they have the iPhone

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that they can continue to sell. 
Make tons of money from that can

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shovel that into content and now
grow a streaming service and 

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bring in a whole new type of 
Revenue. 

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It's not going to be perfect 
when they started. 

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Apple TV plus is way behind 
Netflix or you know Disney or 

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anything like that but it will 
grow. 

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Time. 
Ten billion dollars goes a long 

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way. 15 billion dollars for 
Amazon goes a very long ways. 

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So these companies are going to 
continue to compound. 

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Now, I want to highlight one 
last part of this interview and 

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just share my thoughts on what 
Gene says here in the second 

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piece related to interest rates,
going up in the impact on 

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valuation. 
Is, they can manufacture higher 

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earnings through BuyBacks. 
So Jean says that Apple can 

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quote manufacturer earnings 
through BuyBacks. 

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They can literally create 
whatever earnings they want. 

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Well, how exactly does that 
work? 

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Let's go ahead and look at it. 
First of all, we have to know 

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that apple is the most 
profitable company in the world 

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by a landslide. 
None of them even come close, 

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for example, we can look at 
Apple's most recent quarter and 

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they had forty four point one 
six billion dollars of free cash

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flow. 
That's the last quarter forty, 

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00:14:06,700 --> 00:14:09,900
four billion dollars in free, 
cash flow and 1/4 the low 

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00:14:09,900 --> 00:14:13,300
quarters, sixteen billion 
dollars, 19 billion dollars. 

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00:14:13,500 --> 00:14:16,000
These are like the high quarters
for Microsoft. 

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So apple is an enormously 
profitable company. 

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00:14:19,800 --> 00:14:22,800
Unlike we've seen in any A 
company with all of this free 

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cash flow. 
Apple uses it as a weapon to 

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grow their earnings per share. 
Now, how do they accomplish 

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this? 
So to really understand this, we

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have to go back to the basics 
and I know you probably know 

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00:14:33,000 --> 00:14:36,100
this but let's go over it just 
in case the earnings per share 

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00:14:36,200 --> 00:14:39,900
is the amount of net income as 
the numerator divided by the 

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00:14:39,900 --> 00:14:43,100
amount of shares, its the 
earnings per share. 

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00:14:43,200 --> 00:14:45,700
It's a basic formula. 
Now in most people look at 

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00:14:45,700 --> 00:14:48,600
growing earnings of a company. 
They look at growing the net 

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00:14:48,600 --> 00:14:50,300
income. 
That's the thing that they focus

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00:14:50,300 --> 00:14:53,200
on the most You gotta grow the 
net income to grow the earnings 

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00:14:53,400 --> 00:14:55,800
because that numerators the most
important part you want to grow 

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00:14:55,800 --> 00:14:58,000
the earnings of the company grow
the net income. 

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00:14:58,300 --> 00:15:01,600
That's not really accurate. 
Another way that you can equally

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00:15:01,600 --> 00:15:04,600
grow their earnings of the 
company is by reducing the 

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00:15:04,608 --> 00:15:07,300
denominator. 
So the earnings are / less 

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00:15:07,300 --> 00:15:10,400
shares outstanding and the way 
that you reduce that denominator

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00:15:10,600 --> 00:15:13,400
is by getting rid of shares, 
reducing the amount of shares 

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00:15:13,400 --> 00:15:16,400
outstanding and that is 
something that Apple is very 

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00:15:16,400 --> 00:15:19,300
good at if we look at their 
shares outstanding over time, 

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00:15:19,600 --> 00:15:20,800
this graph is a little bit 
disappointing. 

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00:15:21,000 --> 00:15:23,500
Evening because it includes 
stock splits. 

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00:15:23,700 --> 00:15:27,100
So when Apple did their stock 
split in 2020, that's not the 

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00:15:27,100 --> 00:15:30,100
solution, they're not diluting 
the shareholder, they split the 

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00:15:30,100 --> 00:15:32,000
stock. 
But then you also notice the 

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trend hair every single quarter,
quarter over quarter, Apple 

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00:15:36,300 --> 00:15:39,600
reduces the total amount of 
shares outstanding and again, 

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00:15:39,600 --> 00:15:42,700
going back to that formula. 
When you reduce the denominator,

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00:15:42,700 --> 00:15:44,700
the amount of shares that it's 
/. 

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00:15:44,900 --> 00:15:48,100
It increases the earnings per 
share some quatrain, we can see 

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00:15:48,100 --> 00:15:50,800
that apple is aggressively doing
sure BuyBacks. 

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00:15:50,900 --> 00:15:57,700
You can see this trend over time
16.9, 16.8 16.6, 16.5. 

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00:15:57,700 --> 00:15:59,900
This is in the billions. 
So they're buying back hundreds 

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00:15:59,900 --> 00:16:02,500
of millions of shares. 
Sixteen point, four billion 

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00:16:02,600 --> 00:16:05,800
sixteen point three billion 
every single quarter, buying 

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00:16:05,800 --> 00:16:08,800
more and more shares back. 
Now when you zoom out even more,

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00:16:08,800 --> 00:16:10,800
here's a graphic of what this 
looks like. 

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00:16:10,800 --> 00:16:14,000
Over a bigger timetable. 
It is incredible. 

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00:16:14,200 --> 00:16:17,300
Apple is literally devouring 
their share count. 

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00:16:17,400 --> 00:16:19,500
They're reducing that 
denominator so much. 

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00:16:19,500 --> 00:16:20,800
They're eating up so many 
shares. 

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00:16:21,300 --> 00:16:23,500
That the earnings have to be 
divided by less shares 

333
00:16:23,500 --> 00:16:26,700
outstanding and the EPS 
continues to Rock It Up. 

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00:16:26,800 --> 00:16:30,900
So this earnings per share 
growth can be manufactured and 

335
00:16:30,900 --> 00:16:34,200
Apple has just the right tool to
manufacture it, which is an 

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00:16:34,200 --> 00:16:37,100
endless stream of free. 
Cash flow will continue to buy 

337
00:16:37,100 --> 00:16:39,900
back, their shares aggressively 
increasing their EPS. 

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00:16:40,000 --> 00:16:43,300
Now, our share BuyBacks, always 
appropriate for every company in

339
00:16:43,300 --> 00:16:45,300
every situation. 
Of course not. 

340
00:16:45,300 --> 00:16:49,000
In fact, share BuyBacks won't 
save a company that's clearly 

341
00:16:49,000 --> 00:16:52,700
going into decline, but company.
Has lowered Revenue over time. 

342
00:16:52,700 --> 00:16:54,700
They're not growing the revenue,
but it's going down. 

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00:16:55,000 --> 00:16:57,100
If they have lower net income 
over time. 

344
00:16:57,300 --> 00:17:00,000
If they have increasing debt 
over time, but they're just 

345
00:17:00,000 --> 00:17:02,100
doing share BuyBacks. 
That's not going to save the 

346
00:17:02,100 --> 00:17:04,599
company. 
It's not a save all for every 

347
00:17:04,599 --> 00:17:07,599
company. 
So in apple situation every 

348
00:17:07,599 --> 00:17:10,000
other metric is going good, 
they're growing the revenue, 

349
00:17:10,000 --> 00:17:11,900
they're growing their Eva, 
they're growing, their free cash

350
00:17:11,900 --> 00:17:14,700
flow, their debts, completely 
flat, it's not growing over time

351
00:17:14,800 --> 00:17:17,099
and they're growing their 
dividends but they're also doing

352
00:17:17,099 --> 00:17:21,300
aggressive share BuyBacks. 
So in this situation share by XR

353
00:17:21,300 --> 00:17:24,400
a very good tool for Apple to 
use, to continually grow their 

354
00:17:24,400 --> 00:17:27,099
earnings over time as they do 
share BuyBacks. 

355
00:17:27,200 --> 00:17:29,700
You own more and more of the 
company because you're not 

356
00:17:29,700 --> 00:17:31,400
splitting it with so many other 
shares. 

357
00:17:31,400 --> 00:17:35,000
So every share that you buy and 
hold becomes a bigger and bigger

358
00:17:35,000 --> 00:17:37,700
portion of the company. 
Now, we'll Apple get all the way

359
00:17:37,700 --> 00:17:41,100
to that 32 Ford PE ratio. 
Well, the multiple expand that 

360
00:17:41,100 --> 00:17:43,900
much will the company go to 250 
dollars a share? 

361
00:17:44,400 --> 00:17:46,300
I don't know. 
I really have no clue. 

362
00:17:46,300 --> 00:17:48,100
If the multiple is going to 
expand that much. 

363
00:17:48,400 --> 00:17:50,800
But with apple in the situation 
they're in right now. 

364
00:17:51,100 --> 00:17:53,500
The ability for this company to 
manufacture its earnings through

365
00:17:53,500 --> 00:17:55,800
share BuyBacks. 
The list of products are coming 

366
00:17:55,800 --> 00:17:59,800
out with and the potential long 
shots of the Apple car of AR and

367
00:17:59,800 --> 00:18:02,200
VR, all the new stuff that they 
can build. 

368
00:18:02,500 --> 00:18:05,100
There is no way that I'm selling
this company and locking in 

369
00:18:05,100 --> 00:18:08,600
gains at a 27, P/E ratio. 
No way I'm taking games right 

370
00:18:08,600 --> 00:18:10,200
now. 
This in my opinion is a 

371
00:18:10,200 --> 00:18:12,700
long-term compounder. 
I don't see any reason to 

372
00:18:12,700 --> 00:18:15,600
believe that the compounding is 
done and in my opinion, this is 

373
00:18:15,600 --> 00:18:17,600
one that I'm probably going to 
continue to hold for the next 

374
00:18:17,600 --> 00:18:19,700
five to ten years. 
So that's my thoughts. 

375
00:18:19,700 --> 00:18:22,700
Overall, I hope you enjoyed 
Little ketchup on Apple and I'll

376
00:18:22,700 --> 00:18:22,700
see you in the next one. 
Little ketchup on Apple and I'll

377
00:18:22,700 --> 00:18:23,500
see you in the next one.