Buddy Technologies Ltd (ASX: BUD) shares have today soared higher thanks to record numbers of Smart Light orders received by the company. The Buddy share price smashed its 52 week high today, and was sitting 19.44% higher at 4.3 cents by the market’s close.

What Buddy does

Buddy helps customers of any size ‘make every space smarter’. It does this through two core businesses including its commercial and consumer businesses. Buddy empowers its customers to fully leverage digital technologies and their impact in a strategic and sustainable way.

Buddy trades under the LIFX brand and has established a leading market position as a provider of smart lighting solutions. The company’s suite of Wi-Fi enabled lights are currently used in nearly one million homes, viewed as second only to lighting giant, Philips. LIFX products are sold in over 100 countries worldwide, directly and via distribution. The company has sales partnerships with leading retailers and eCommerce platforms including Amazon.com, Inc. (NASDAQ: AMZN), Alphabet Inc Class A (NASDAQ: GOOGL), Apple Inc. (NASDAQ: AAPL) and JB Hi-Fi Limited (ASX: JBH) among others.

Record orders

The Buddy share price has soared today following the company’s announcement it has received record purchase orders of US$3.1 million. These orders now eclipse the previous largest orders by 33% in terms of unit volumes.

The orders are intended to meet Black Friday/Cyber Monday demand, with devices built under the orders to be shipped to North America for sale in the United States and Canada. Buddy also noted that it is unusual to receive orders this early. Although this may be explained, given the size of these orders and the irregularities in global supply chains, by COVID-19. As a result, some retailers are being more proactive in advance ordering than might otherwise be the case.

What now for the Buddy share price?

The Buddy share price has been moving strongly higher since late March. From these lows the company is now up 330%. Buddy shareholders will be hoping that the company can build on this record order and keep growing moving forward.

More reading

• Why the Buddy Technologies share price more than doubled in a week

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Daniel Ewing owns shares of Alphabet (A shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Amazon, and Apple and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Amazon, and Apple. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Super Retail Group Ltd (ASX: SUL) share price is up 21% so far in August. And this rise comes before the company reports its full year results for the 2020 financial year.

Super Retail is listed on the S&P/ASX 200 Index (ASX: XJO), which has gained 3.3% so far in August.

The Super Retail share price wasn’t spared from the wider COVID-19 panic selling, which hit many ASX retailers particularly hard. Super Retail’s share price plunged 63% from 21 February through its low on 19 March. Since that low, it has rocketed 201% higher.

The strong rebound was enough to erase the pandemic-driven losses. Year-to-date, Super Retail shares are up by 4.6%

What does Super Retail Group do?

Super Retail Group is one of Australasia’s biggest retailers. The group has three divisions: auto, outdoor and sports. It’s primarily involved in retailing of auto parts and accessories, tools and equipment, retailing of boating, camping, fishing and sporting equipment and apparel. Super Retail Group houses iconic brands including BCF Boating Camping Fishing, Macpac, Rebel and Supercheap Auto.

Headquartered in Brisbane, the group’s network extends to over 670 retail stores and more than 12,000 team members across Australia, New Zealand and China.

Super Retail Group shares first listed on the ASX in 2004. The group’s shares have historically paid a fully franked dividend.

Why is the Super Retail share price up 21% in August?

Super Retail’s August performance got a big boost from its updated earnings guidance, released on 31 July. The company’s unaudited full-year results showed total sales for FY20 increased 4.2%. 

Super Retail Group releases its full 2020 financial year results on Monday 24 August. With Super Retail’s share price up almost 3% in late afternoon trading today, investors look to be expecting a positive report.

Despite stage 4 restrictions potentially remaining in place in Victoria through September, longer-term investors are also increasingly beginning to look beyond the short- to mid-term impacts of lockdowns towards the potential booming recovery on the horizon.

The Super Retail share price will be one to watch on Monday following the release of its FY20 results.

More reading

• What experts are saying about JB Hi-Fi’s profit results as the stock surges to record
• 2 ASX retail shares on my radar in 2020
• Super Retail and 2 other ASX retail shares to watch in August
• Why you should buy ASX shares in this resilient market
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking for additions to your retirement portfolio, then I think the ASX 50 index is a great place to start.

The ASX 50 index is a large cap index which has been designed to represent 50 of the largest and most liquid shares listed on the ASX based on their float-adjusted market capitalisation.

But which ASX 50 shares should you buy? I think the two listed below could be top options right now:

Coles Group Ltd (ASX: COL)

I think that Coles is one of the best shares for a retiree to own right now. This is due to its solid long term growth potential, cost cutting, generous dividend policy, and defensive qualities. The supermarket giant has displayed the latter this year with its strong sales and profit growth during the pandemic. Coles reported a 6.9% increase in sales to $37.4 billion and a 7.1% lift in net profit after tax to $951 million in FY 2020.

The good news is that the company has started the new financial year strongly and looks well placed to deliver another solid profit result in FY 2021. This should put Coles in a position to reward shareholders with another generous dividend next year. Based on the current Coles share price, I estimate that it offers a fully franked FY 2021 3.3% dividend yield.

CSL Limited (ASX: CSL)

I think this biotherapeutics giant CSL would be a good addition to a retirement portfolio. While it may not provide investors with an overly attractive yield, I believe its dividend can grow strongly over the next decade thanks to its positive long term outlook.

This is thanks to its talented management team, its lucrative research and development pipeline, and the strength of its existing therapies and vaccines. The latter include key immunoglobulins products such as Privgen and Hizentra and haemophilia products Idelvion and Afstyla. Combined, I believe they have positioned CSL to deliver consistently solid earnings growth over the 2020s and beyond.

More reading

• Should you buy ASX shares before or after reporting season?
• Buy CSL and these quality ASX blue chip shares today
• Is the CSL share price a buy?
• Where to hunt for ASX dividend share income in 2020
• Why CSL, Iress, Santos, & Webjet shares are dropping lower

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of COLESGROUP DEF SET. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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So far, this year has been a disappointing ride for the NIB Holdings Limited (ASX: NHF) shareholders. The NIB share price has fallen 32% over the past 12 months and has been hovering under $5 since it released its results back in February.

At the time of writing, NIB shares are trading 0.21% higher to $4.85 compared to the S&P/ASX 200 Index (ASX: XJO), which is down 0.1% to 6,116.40 points.

Why did the NIB share price fall?

When the private health insurance provider released its HY20 group results, they fell short of market expectations. NIB’s underlying operating profit declined 27.2% to $83.2 million, despite growth in its total group revenue, which stood at $1.3 billion, up 6.4% compared to the prior corresponding period.

On top of this, the emergence of the coronavirus pandemic in Australia sent shockwaves through the ASX and sent the NIB share price south to a multi-year low of $3.34.

Since then, NIB updated shareholders in May about the challenging conditions the company was facing. April sales in its flagship Australian Residents Health Insurance (arhi) business were down 22% and lapse of policies declined by 23%.

In the claims department, savings were relatively modest at the end of March compared to what was anticipated in the coming months. In the update, NIB advised that calculating savings is complex and could not provide an estimate. However, the company stated there could be possible cash refunds for members as compensation for the lack of benefits accessed during these difficult times.

What’s next for NIB shareholders?

NIB is expected to release its FY20 results on Monday 24 August.

No update on its FY20 guidance has been given due to the uncertainty of the business impact over these past few months. However, it has advised it expects a surge in treatment and claims, post-COVID-19.

Additionally, the company’s bottom line will be affected as premiums have been suspended until October 2020, among a range of other measures such as offering financial hardship and extended product coverage support at no extra cost.

The final dividend for FY20 will be considered depending on the financial health of the company.

Foolish takeaway

Economy-wide constraints have affected the private health insurance provider. The current environment remains one marred by volatility as it has impacted healthcare treatment and claims.

Personally, I don’t think the NIB share price will recover in the short-term. Trading on a forward price-to-earnings (P/E) ratio of 16.63 compared to its bigger rival Medibank Private Ltd (ASX: MPL)‘s P/E of 25, NIB is much better value. However, in my opinion it is best if investors have NIB shares on their watchlist for now until the economy has fully recovered.

More reading

• ASX 200 flat: Suncorp surges higher, A2 Milk acquisition plans, TPG’s half year update
• Meet the latest ASX stock that’s more than doubled its full year COVID-19 earnings
• Mayne Pharma share price on watch as earnings slump 27%
• Why these Charter Hall REITs are outperforming in FY20
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Aaron Teboneras owns shares of NIB Holdings Limited. The Motley Fool Australia has recommended NIB Holdings Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re interested in diversifying your portfolio by investing in some international shares, then I think exchange traded funds (ETFs) are a great way to achieve this.

But given the large number of ETFs on offer, it can be hard to decide which ones to choose.

To narrow things down for you, I’ve picked out three that I think would be great additions to most portfolios. 

Here’s why I think they could provide strong long term returns for investors:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at buying is the BetaShares Asia Technology Tigers ETF. This fund tracks the performance of the 50 largest technology and ecommerce companies that have their main area of business in Asia (excluding Japan). This means you’ll be getting exposure to companies such as ecommerce giant Alibaba, electronic behemoth Samsung, and WeChat owner Tencent Holdings. Given the outlook for the Asian economy over the next decade and beyond, I believe these quality companies are well-positioned for growth over the long term. I believe this could lead to the BetaShares Asia Technology Tigers ETF outperforming most major markets.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another option for investors to consider buying is the BetaShares NASDAQ 100 ETF. This ETF has a strong focus on technology and provides investors with diversified exposure to a high-growth potential sector that is under-represented in the ASX. Among its holdings you’ll find the likes of Amazon, Apple, Facebook, and Netflix, to name just a few. I believe the majority of the companies on the index have very positive outlooks. As a result, I suspect the Nasdaq 100 will continue to outperform the ASX 200 over the next decade.

VanEck Vectors China New Economy ETF (ASX: CNEW)

Similar to the BetaShares Asia Technology Tigers ETF, the VanEck Vectors China New Economy ETF gives investors access to the growing Chinese economy. This fund gives investors exposure to a portfolio of exciting companies in China which are in sectors that are making up “the New Economy.” This includes the technology, health care, consumer staples, and consumer discretionary sectors. The VanEck Vectors China New Economy ETF is invested in 120 companies, which it believes represent growth at a reasonable price.

More reading

• 2 ASX ETFs I would buy for growth and income
• Want to own the FAANG stocks? Here are 3 ways you can
• 2 fantastic ETFs for ASX growth investors to buy today
• 2 exciting high-growth ETFs to buy for high returns today
• 3 of the best ETFs for ASX investors to buy right now

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Corporate Travel Management Ltd (ASX: CTD) share price has shot up more than 57% so far in August. For some perspective, during that same time, the S&P/ASX 200 Index (ASX: XJO) gained 3.3%. Like most ASX shares — especially those in the travel and leisure industries — Corporate Travel’s shares took a beating during the COVID-19 inspired market rout. From its 20 January high, the company’s share price fell 79% through to 19 March.

The Corporate Travel share price has gained a stellar 192% from that low, though the shares remain down 34% year to date.

What does Corporate Travel Management do?

Corporate Travel Management specialises in the provision of travel solutions across corporate, events, leisure, loyalty and wholesale travel.

Businesses engage with Corporate Travel Management to maximise savings, efficiency and compliance. The company is underpinned by leading and innovative technology, which it has leveraged to carve out a major position in the global corporate travel market.

Corporate Travel Management started out in Brisbane in 1994. It listed on the ASX in 2010. Since then, Corporate Travel has experienced tremendous growth on the back of progressive launches into the United States, Asia, and United Kingdom markets. The company generates a majority of its revenues from outside of Australia and continues to leverage technology to drive growth.

Why is Corporate Travel Management’s share price soaring in August?

Corporate Travel’s share price has likely benefited from investors beginning to look beyond the impacts of coronavirus, realising companies like Corporate Travel may now be trading at longer-term bargains.

The company also received a boost from some positive broker coverage. On 6 August, Morgans upgraded Corporate Travel’s shares to a buy, stating the company had enough liquidity to see it through the end of the 2022 financial year. According to the note, the broker set a $12.85 price target, which is certainly looking conservative today. At the time of writing, Corporate Travel is trading at $13.72 per share.

Corporate Travel’s share price has continued to gain over the past few days, albeit at a slower pace. That comes despite the company reporting an $8.2 million loss for FY20 on Wednesday, driven by the shuttering of travel markets in March. Forward looking investors are likely focused on the company beating its fourth quarter expectations. Corporate Travel has been aided by the fact many of its clients are deemed essential service providers, and thus are still permitted to travel.

More reading

• ASX 200 rises 0.7%, CSL soars 6.4%
• Why Corp Travel, CSL, Domino’s, & WiseTech Global shares are storming higher
• Corporate Travel Management share price on watch
• 5 things to watch on the ASX 200 next week
• These were the best performing ASX 200 shares last week

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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One area of the market which has been on fire in 2020 has been the gold sector.

Since the start of the year the S&P/ASX All Ordinaries Gold index (ASX: XGD) has climbed an impressive 27%.

This strong gain has of course been driven by the appreciating gold price due to a number of factors. These include increased demand for safe haven assets, market volatility, ultra-low interest rates, and a weakening U.S. dollar.

The price of the precious metal has been in such strong form that earlier this month it broke through the US$2,000 an ounce mark to reach a record high.

But it’s not only the gold miners that have been profiting from the rise in the gold price. Australian retail investors have been flocking into the sector and look to have made a killing.

What are retail investors buying?

Gold miners Northern Star Resources Ltd (ASX: NST) and Saracen Mineral Holdings Limited (ASX: SAR) appear to have been particularly popular with retail investors.

According to Northern Star’s annual report, there are 9,552 Northern Star shareholders that have a holding of 1 to 1,000 shares. This represents 52.45% of its shareholders and compares to 6,056 shareholders a year earlier.

Based on the current Northern Star share price, this means over half of the gold miner’s shareholders have holdings of less than $14,000.

It is a similar story for Saracen Mineral. Its FY 2020 annual report shows that 5,955 or 37.2% of its shareholders own 1 to 1,000 shares. With the current Saracen share price at $5.37, this means over one-third of its shareholders have holdings of $5,370 or lower. This is also up strongly year on year.

And if you extend this out to shareholders with 1,001 to 5,000 shares, this increases by a further 5,786 shareholders. Combined, that’s 11,741 shareholders or 73.4% of its total register with shareholdings worth under $26,850. Clearly, interest in Saracen has been strong with retail shareholders based on these figures.

But how have they fared?

It’s fair to say that these investors have done very well by investing in the gold sector.

The Northern Star share price is up 25% year to date and the Saracen share price has zoomed a massive 61% higher in 2020.

And we’re only in August.

More reading

• 3 ASX results you might have missed on Wednesday
• Northern Star share price drops lower despite record profit and special dividend
• The latest ASX stocks upgraded by brokers to “buy” today
• Why Cochlear, Kogan, Megaport, & Northern Star shares are charging higher
• Warren Buffett is dumping banks and buying gold, should you?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Australia’s top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Catapult Group International Ltd (ASX: CAT)

According to a note out of Morgans, its analysts have retained their add rating and lifted the price target on this sports analytics and wearables company’s shares to $2.44. Morgans was pleased with Catapult’s performance in FY 2020 and particularly its positive free cashflow. It was also happy with its low levels of churn during the pandemic and sees a long runway for growth ahead of the company. I think Morgans makes some good points and Catapult would be worth a closer look.

IDP Education Ltd (ASX: IEL)

A note out of UBS reveals that its analysts have retained their buy rating and lifted the price target on this student placement and language testing company’s shares to $21.00. The broker notes that IDP delivered a stronger than expected result in FY 2020 thanks largely to its excellent cost control. It also notes that demand for its services remains strong and expects the company to come out of the crisis in an even stronger market position. I agree with UBS and would be a buyer of IDP Education’s shares.

Pro Medicus Limited (ASX: PME)

Another note out of UBS reveals that its analysts have upgraded this health imaging software company’s shares to a buy rating with a $29.65 price target. UBS was pleased with its better than expected performance in FY 2020 and expects another strong year ahead. Especially given how its sales pipeline continued to grow even during the pandemic. I would have to agree with the broker on this one as well. I think Pro Medicus could be a great buy and hold option.

More reading

• Why IDP Education, IRESS, Mosaic Brands, & Mayne Pharma are dropping lower
• ASX 200 down 0.8%, IDP Education soars
• ASX 200 down 1%: Qantas results, Afterpay hits record high, Webjet crashes lower
• Why Afterpay, Codan, IDP Education, & Sonic shares are charging higher
• Pro Medicus share price drops 5% despite strong FY 2020 growth

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Idp Education Pty Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Catapult Group International Ltd and Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Catapult Group International Ltd and Pro Medicus Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Finding ASX shares with dividend yields over 7% is a lot harder than it used to be. Gone are the days when at least 2 of the big four ASX banks had a 7% yield on offer. Ditto with other ASX blue chips like Woolworths Group Ltd (ASX: WOW) or Wesfarmers Ltd (ASX: WES).

Even before the coronavirus pandemic hit, record low interest rates saw ASX dividend shares bid to the sky as investors hunted for yield. It’s a big reason why (in my opinion), ‘safe’ dividend shares like Transurban Group (ASX: TCL) and Sydney Airport Holdings Pty Ltd (ASX: SYD) both rose by roughly 50% in value between late 2018 and early 2020.

But the game has changed in 2020. The pandemic has crippled the power of many ASX companies to generate profits at the same rates they used to. And dividends are paid out of profits.

So here are 2 ASX shares that still offer investors a grossed-up yield of more than 7% in 2020.

2 ASX dividend shares with high yields

1) Telstra Corporation Ltd (ASX: TLS)

Telstra shares have been on the slide ever since the company released its full-year earnings last week. Investors apparently weren’t too impressed with the 9.7% drop in underlying earnings the company reported for FY2020.

However, one aspect of the announcement was well-received: the continuation of Telstra’s 16 cents per share annual dividend. And because Telstra shares have fallen around 10% over the past week, that dividend is looking a whole lot juicer today.

On current prices, it’s offering investors a trailing yield of 5.26%, or 7.51% grossed-up with full franking. That’s not a bad looking deal for dividend income in my view. I’m also excited bout Tesltra’s upcoming 5G rollout, which could give the company a new source of earnings (and fund higher dividends) in the years ahead.

WAM Research Ltd (ASX: WAX)

WAM Research is a listed investment company (LIC) run by the venerable Wilson Asset Management. It primarily invests in mid-cap ASX companies with growth characteristics or that it finds undervalued. Some of its current holdings include Adairs Ltd (ASX: ADH) and Breville Group Ltd (ASX: BRG). It then uses the gains from this strategy to fill a ‘profit reserve’, from which it pays dividends.

WAM Research’s last dividend came in at 4.9 cents per share, which if annualised gives this company a dividend yield of 7.1%, or 10.14% grossed-up with full franking. Seeing as WAM research still has 27.7 cents per share left in its profit reserve, I would say this dividend is well-covered for at least a couple of years. As such, I think it’s a top choice today for any income investor looking for reliable ASX dividend shares.

More reading

• Where to hunt for ASX dividend share income in 2020
• Why I would buy Telstra and this ASX dividend share today
• Afterpay and Mesoblast were among the most traded shares on the ASX last week
• Have $3,000 to invest? Try these 2 dirt-cheap ASX shares
• Telstra share price hit by broker downgrade today

Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited and WAM Research Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Transurban Group, Wesfarmers Limited, and Woolworths Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Overnight (our time), Apple Inc. (NASDAQ: AAPL) achieved an incredible milestone. It became the first publically-listed company in the world to achieve a market capitalisation of more than US$2 trillion (A$2.78 trillion).

On the latest day of trading over in the United States, Apple pushed over US$473 a share, which was enough to seal the deal on the US$2 trillion ceiling.

If you’re struggling to try and get your head around the stupendously massive number that is US$2 trillion, picture this. In 2019, the entire gross domestic product (GDP) of Australia was around US$1.4 trillion. That’s the value of every good and service sold in Australia last year. Yep, one company is worth more than that.

But it’s just another milestone for Apple. It was only just over 2 years ago that Apple was crowned the first US$1 trillion company. And today, the company gets the US$2 trillion crown as well.

It was a close race. There are a few companies that were close contenders for the US$2 trillion title. At the time of writing, Amazon.com Inc. has a market capitalisation of US$1.65 trillion. Microsoft Corporation is on US$1.62 trillion and Alphabet (owner of Google) is on US$1.07 trillion.

But none of these companies ended up getting in the way of Apple’s birthright.

So what is it about this company that is so darn special?

The Apple of investors’ eye

We all know Apple. Even if you don’t have an iPhone, Mac, iPad or set of Airpods, chances are you know someone who does. This statement can probably be applied to almost anyone living in most countries of the world.

This company has built such a phenomenal brand that it has the luxury of charging pretty much whatever it likes for its products. According to Apple’s latest quarterly filing, it has a gross margin (how much of a sale it keeps as profit) of 38%. That’s an incredible metric. It implies that the company makes a luxury-item premium on mass-market products – something most other companies could only dream of.

In my view, Apple’s brand is what has enabled the company to reach US$2 trillion. There are a lot of great brands in the world. Coca Cola, Louis Vuitton, Toyota, Google, Nike… the list goes on. But Apple is a cut above the rest. The kind of loyalty the Apple brand inspires is unrivalled. People literally queue for hours to buy the company’s high-margin products. And there are some people who will buy whatever product Apple releases, just because it’s Apple.  It’s trusted, it’s unique and it’s special.

So when you’re looking for your next investment, you might be tempted to ask yourself ‘is this the next Apple’. In some ways, I think this attitude could be helpful. But at the end of the day, no other company is truly like Apple. That’s why Apple is the sole member of the US$2 trillion club today.

More reading

• These beaten down ASX energy shares could mirror the tech share price boom
• After the stellar COVID-19 rebound, can ASX share prices keep rising?
• Apple to hit US$3 trillion by 2023, analyst predicts
• Want to own the FAANG stocks? Here are 3 ways you can
• Here are the top 5 US shares ASX investors have been buying

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares) and Nike. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, and Nike and recommends the following options: long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Nike. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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