Stocks to Buy for the Next Decade: Apple (AAPL)
You can say what you want about the iPhone maker’s best days being behind it, but I have a feeling Apple Inc. (NASDAQ:AAPL) will continue to create products people want to buy for years to come.
What they are, I couldn’t tell you.
What I do know is that Apple will continue to generate a huge amount of free cash flow — $52.5 billion in the trailing 12 months through Dec. 31, 2016 — to reward shareholders for their patience and loyalty. AAPL currently converts 71.7% of its EBITDA into free cash flow, which is pretty darn close to the 77.7% conversion rate of Amazon — a company known for doing a good job converting cash.
The most recent rumor on Wall Street has Apple and Walt Disney Co (NYSE:DIS) hooking up to form a media and tech conglomerate. While speculative in nature, the combination would provide Apple with a few more avenues to generate ideas for new products.
At this point, while I like Disney, I’d say it needs Apple more than Apple needs it.