This may come as a surprise, but just because Apple just came out with some amazing products doesn’t mean that to invest all your money in that one company. Like any other single-company stocks, that would mean a huge risk; any kind of consumer indifference of earnings disappointment will translate into lower stock values. Here are a few other reasons why holding a large amount of Apple stock might be bad for your portfolio:
Apple is one of the most popular stocks in the world and thus is nearly everywhere. If you have mutual funds or ETFs that own the largest companies in the world, it’s likely you already own some Apple stock.
The stock price is volatile. The share prices has gone up and down in the last few years ranging from under $30 a share in 2009 to over $100. This is great, if you’re a long-term investor, but if you bought in at around $100 a share and it dropped, you might want to ask yourself if you can handle drops of up to 40 percent.
Apple is a tech company. That means the competition might become better one day, and stock value will drop. Also, there may be security issues that affect stock value.
