Buying Apple (AAPL) stock has been one of the greatest investments of all time. Even billionaire Warren Buffett, one of the most successful investors of all time, has made Apple the biggest single position in the investment portfolio of his company, Berkshire Hathaway.
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However, hindsight doesn’t matter if you’re considering buying Apple stock for the first time. Before taking a bite out of this particular apple, consider the following current market summary stats (as of May 2, 2025):
Apple could be seeing some shake-ups in its profit margins as shares have slipped this year due to President Trump’s tariff turmoil. This should give investors momentary pause while the tech giant figures out a way to offset high importation taxes on some of its biggest sellers, like iPhones and more.
So, is buying Apple a good move now, or are there smarter things to do with your money? Here are three potentially much better options for you to consider.
As impressive as Apple’s return has been over the years, paying off any high-interest debt you may have can be a much better choice for your money. Most credit cards now charge 20%, 25% or even more in interest annually. If you use your money to pay that debt down, you’re effectively getting a guaranteed return of 20% or more annually.
While Apple is certainly capable of posting a 20%-plus return in any given year, it may also lose that amount or more. Snagging the guaranteed return of paying down your debt can be a much wiser move over the long run.
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The cornerstone of any financial plan is a solid emergency fund. Although most Americans know they should have one, many still don’t.
If you have an emergency fund, you’ll have cash on hand to deal with life’s little unexpected problems. If you don’t, you’ll risk going into debt if your car needs repairs or you bust a water main at your house.
And as soon as you’re in debt, your financial problems can rapidly spin out of control. A $2,000 credit card bill could double to over $4,000 in four years or less if you put it on a credit card.
As strong a performer as Apple has been, dumping all of your investable money into it isn’t a very prudent financial strategy. Most financial experts, including Fidelity, recommend that investors diversify their holdings across various asset classes and types. This can help minimize your risk while maintaining your potential reward.
