Warren Buffett owns some great stocks. Apple, Coca-Cola, Amazon, and Johnson & Johnson are just some of the names in his portfolio.

But there are two in Buffett’s portfolio, in particular, that strike me as ‘no-brainers’. I’m talking about payments companies Mastercard and Visa. Here’s why I’d follow Buffett into these stocks today.

Mastercard and Visa are both global electronic payment-processing companies that help consumers, merchants, financial institutions, and government entities move money safely and efficiently. You can think of them as the ‘plumbing’ of the world’s financial system. These companies don’t issue credit or debit cards directly. Instead, they provide networks that allow consumers and businesses to make transactions, and process all the transactions.

Huge growth potential

With the world moving away from cash and shifting to electronic payments, both Mastercard and Visa appear to have a huge amount of potential.

Both companies have registered strong revenue growth over the last decade as more payments have been made by card. However, the growth story here appears to have plenty of room to run. According to Allied Markets Research, the global credit card payments market is set to grow by 9% per year between 2021 and 2028. This means that trillions of transactions are set to shift from cash to card in the years ahead.

The ease and convenience of paying for goods and services electronically is expected to be one key growth driver. Adoption in the emerging markets, and the growth of the online shopping industry are also expected to drive growth.

Why I’d buy now

With so much long-term growth potential, one would expect these Buffett stocks to be popular. However, this isn’t the case. Recently, both stocks have been a little out of favour due to the fact that travel spending has been lower during the pandemic.

So, I think now is a great time for me to be buying because both stocks have reasonable valuations, in my view. At present, Mastercard trades at 38 times this year’s earnings while Visa trades at 33 times.

I don’t expect these stocks to trade at these levels for long. That’s because both companies are starting to see a rebound in travel spending. And this is boosting revenues significantly. Last week, for example, Mastercard posted quarterly revenue growth of 27% while Visa posted top-line growth of 24%.

Attractive risk/reward profiles

Of course, there are risks to consider here. One is further Covid-19 variants. If new variants emerge and the travel industry is hit again, these two companies will see their revenues dip.

Another is new payments technologies such as blockchain and crypto. In theory, crypto could make Mastercard and Visa obsolete.

Overall, however, I think these two Buffett stocks offer very attractive risk/reward propositions right now. In the near term, they look set to benefit from the return of travel. Meanwhile, in the long run, they look set to benefit from the shift to electronic payments.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Edward Sheldon owns Amazon, Apple, Mastercard, and Visa. The Motley Fool UK has recommended Amazon, Apple, and Mastercard. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

The Alphabet (NASDAQ: GOOG) share price jumped yesterday after the company reported its results for the fourth quarter of 2021. 

Google’s parent reported revenues of $75.3bn for the three months ending 31 December, up 32% compared to last year, and a profit of $20.6bn. The stock is up 10% after reporting these numbers at the time of writing. 

Alphabet has defied expectations by outperforming in an increasingly competitive advertising market. The company’s advertising revenues came in at $61.2bn for the quarter, up from $46.2bn the same time last year. These figures showcase the organisation’s strengths.

Despite increasing competition in the sector and growing regulatory headwinds, the corporation’s international reach and recognition are helping overcome these challenges. 

The question is, can this trend continue? And if it can, is it worth buying the stock for my portfolio after its recent performance?

The Alphabet share price opportunity

Shares in the tech company are currently changing hands at a 2022 price-to-earnings (P/E) multiple of 24. That is based on current Wall Street estimates, which may change. 

I think this significantly undervalued the business. Indeed, some consumer goods businesses trade at similar multiples, even though they have lower profit margins and lower returns on capital.

What’s more, I think this valuation fails to consider Google’s international brand value. It would be almost impossible for a competitor to build the kind of international recognition this company has achieved over the past two decades.

This brand value is worth a significant valuation premium, in my opinion.

That being said, it would be silly for me to ignore the growing risks and challenges the company faces.

As mentioned above, the online advertising space is becoming increasingly competitive. Although Google is one of the dominant players, it also has to fight off other deep-pocketed competitors such as Amazon and Facebook.

Regulators worldwide are also looking to introduce more stringent rules for online advertising. These rules could increase the cost of doing business for Google and weigh on its profit margins. 

Tech sector leader

Even after considering these challenges, I think Alphabet can continue to build on the strengths it has developed over the past two decades.

The world is only becoming more interconnected and more digitised. Alphabet has the size and scale required to offer customers an all-round package of digital services at a relatively low cost. 

As this trend continues, I think the company’s position in the market will only grow. As such, I think the Alphabet share price currently presents a fantastic opportunity for a long-term investor like me. 

The shares look relatively inexpensive, and it seems as if the firm has a long growth runway ahead of it. Those are the reasons why I would buy the stock for my portfolio. To capitalise on both the company’s growth and the expanding digital universe. 

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. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has recommended Alphabet (A shares) and Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

I am always looking for cheap UK shares to add to my portfolio. And there is one business I think looks incredibly undervalued right now, compared to its potential. 

When CYBG completed the merger of its peer, Virgin Money (LSE: VMUK), in the middle of 2018, investors pushed shares in the enlarged lender up to an all-time high of more than 350p.

However, the company has come under pressure since the group completed the deal. The stock has slumped 50% from this all-time high, as the bank has failed to live up to expectations. 

Significant challenges

In fairness, there have been some significant challenges for the group to overcome along the way. The integration process was a bit trickier than initially expected and then the coronavirus pandemic arrived. That caused significant disruption across the enterprise when it should have been concentrating on expanding its bigger footprint. 

After two years of disruption, it looks to me as if this business is now getting back on track. According to the company’s latest trading update, covering the three-month period to the end of December, the lender has made solid progress in refocusing its business model away from low-cost credit.

The overall net interest margin, which measures the gap between the cost of the bank’s cash (usually savings deposits) and the amount it charges borrowers, rose to 1.77% from 1.70% in the previous quarter. 

While overall lending balances declined, the company reported an increase in unsecured lending. This is typically credit card lending, which has a significantly higher interest rate than products such as mortgages. 

A cheap UK share in transition 

Virgin Money is in the middle of a significant transition. The company is trying to improve its digital proposition, reduce costs and increase options for consumers. It is also focusing on customer service rather than the race to the bottom that has persisted across the UK banking industry in recent years. 

This strategy is not risk-free. It assumes consumers are willing to pay a bit more for better service. That is not guaranteed in the banking industry.

Meanwhile, some of the company’s peers have considerably deeper pockets and can offer much better deals. This could push customers away from the business in the long run, holding back growth. 

Still, looking at this cheap UK share, I think its depressed valuation more than makes up for these potential risks. Indeed, at the time of writing, the stock is trading at a forward price-to-earnings (P/E) ratio of just 6.5 and a price-to-book (P/B) value of 0.5.

I believe these metrics fail to take into account the company’s potential. In fact, I think the market is focusing too much on what the company was, rather than what it can be as the UK economy returns to growth, interest rates rise and the lender’s growth strategy moves forward.

With these tailwinds behind it, I reckon the market may re-rate the shares to a sector-average multiple. 

Considering many of the company’s peers are trading at a double-digit P/E multiple and a book value of at least one, these figures could indicate that the stock could double from current levels.

Based on this potential, I would be happy to buy the shares for my portfolio today.

Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

There are certain stocks that, from a long-term investment perspective, I think are ‘no-brainers’. I’m talking about the stocks of dominant global companies that are almost guaranteed to get much bigger in the years ahead.

Here, I’m going to highlight two such stocks I’ve bought for my own portfolio and plan to buy more shares in the near future.

Warren Buffett’s top stock

Let’s start with Apple (NASDAQ: AAPL), which is Warren Buffett’s largest holding. It’s a classic example of a no-brainer stock, to my mind, as it has a very high market share of the smartphone business and has users ‘locked in’ via its ecosystem.

Apple is already a massive company. Currently, it has a market capitalisation of $2.9trn. Yet this doesn’t deter me. That’s because I expect the company to get much bigger in the years ahead as it expands its presence in high-growth industries.

One industry that I think Apple could see a lot of success in is payments. Already, its Apple Pay service is bringing in billions of dollars in revenue for the company every quarter. However, I think it’s just getting started here.

It’s worth noting that Apple is shortly about to let businesses accept contactless payments on its iPhones without the need for extra hardware. I see this as a game-changer, as the market for small-business payments is enormous.

Another industry that could provide long-term growth is healthcare. I’ve been really impressed with what Apple has done in this area in recent years via its iPhones and Watches. Its ‘Fall Detection’ feature, for example, looks very useful for the elderly. But I believe Apple is still in its early days here. 

Of course, Apple will need to keep innovating to keep growing. If it doesn’t, it could become another Nokia.

But I’m confident the company is heading in the right direction. And with the stock trading on a reasonable P/E ratio of 28, and the company buying back shares, I see it as a ‘buy’.

One of the biggest players in AI

Another stock that I see as a no-brainer today is Alphabet (NASDAQ: GOOG). It’s the owner of Google and YouTube. Alphabet is growing at a rapid rate. Last night, for example, it posted revenue growth of 32% for Q4 2021.

There are a number of reasons I see Alphabet as a must-buy. For starters, it has a very dominant position in internet search (90%+). This puts it in a very powerful position from an advertising perspective. I expect digital advertising revenues here to surge in the years ahead.

Secondly, it has an incredible content platform in YouTube. Here, over a billion hours of content are viewed every single day. Again, this puts it in a very strong position for digital advertising.

What I’m really excited about however, is the potential in artificial intelligence (AI). In recent years, Alphabet has made a large number of AI-based acquisitions. As a result, it looks set to lead the sector revolution.

Now one risk to consider here is regulation. Because Alphabet has become so dominant, it could be broken up or fined by regulators. I think this risk is factored into the valuation however, as the P/E ratio is only about 25.

All things considered, I see this BigTech stock as a ‘buy’.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Edward Sheldon owns shares in Alphabet (C shares) and Apple. The Motley Fool UK has recommended Alphabet (A shares) and Apple. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Recently, I have been scouring the market for the best shares to buy now with a lump sum of £500. I am looking to invest in a basket of recovery stocks, companies that look cheap and may benefit from the economic bounce back over the next few years.

However, I am also aware this strategy comes with many risks. So I am not willing to risk a considerable amount of cash on businesses that may fail to live up to my expectations. 

With that in mind, here is a list of my best shares to buy now with £500 for my recovery portfolio. 

Best shares to buy for the recovery

In the industrial materials sector, I think Ferrexpo and Evraz currently appear cheap compared to their potential. Rising demand for iron ore and steel suggest that these two companies could see a significant increase in profitability over the next couple of years. 

Now there is one overriding reason why the rest of the market is avoiding these companies. They are based in Ukraine and Russia, which means they are incredibly exposed to ongoing geopolitical tensions. 

But with both stocks trading at a forward price-to-earnings (P/E) multiples of less than 5, I am willing to risk my money on these opportunities. As commodity prices rise, it looks as if both are on track for windfall profits this year. 

Construction recovery

Another high-risk, high-reward opportunity is the construction group Kier. Since 2018, this company has been struggling to earn a consistent profit.

But analysts believe that will change over the next two years as the UK economy rebounds. Recent economic data shows that the construction sector is firing on all cylinders. As such, I am inclined to believe this view.

Still, the construction sector is usually the first to feel the pain in an economic downturn. So if the economy takes a turn for the worst, Kier could suffer.

Nevertheless, with the stock trading at a forward P/E of less than 5, I think the company’s valuation more than compensates for this risk. 

Windfall profits

I also believe that B&Q owner Kingfisher is one of the best shares to buy now. Home improvement and DIY sales boomed during the pandemic, which really enabled this business to get its house in order. It has made a significant dent in net debt, and management has invested in new growth initiatives. 

While the company will face challenges such as rising inflation pressures and the cost of living crisis as we advance, I think it is well-positioned to capitalise on the UK economic recovery over the next few years.

Despite this potential, the stock is currently trading at a forward P/E of just 9.4. The shares also offer a dividend yield of 3.6%, at the time of writing. 

Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

We’re still just a month into 2022 but FTSE 100 stocks have performed quite well so far. That’s especially so compared to the tech-heavy US market. If worries over inflation and rising interest rates persist, this could be the big theme of 2022. So as inflation rises, this is how I’d invest £2,500 in FTSE 100 stocks to try and outperform the market and increase the value of my Stocks and Shares ISA.

New energy please

I’ll avoid industries that may be dominant in the FTSE 100, but are structurally challenged. That rules out oil and gas, as well as tobacco. Investing long term, for me at least, is about finding value in companies from industries that will grow steadily, and ideally, that aren’t particularly cyclical or volatile.

SSE (LSE: SSE) is a value share that seems to combine income with steady future growth potential. A dividend yield of 5.2% is very healthy and well ahead of the average for the FTSE 100. It’s certainly not a racy tech stock – but so far this year, that has been a good thing. The downside to buying stock of an energy company like SSE is the need for high levels of investment in the business. This can dent profits and put off some dividend seekers. 

That said, the energy group is well placed to benefit from the transition to renewable energy. According to the SSE website, it has 4GW of onshore wind, offshore wind and hydro. It’s currently very focused on the UK and Ireland, but the group says that it’s actively exploring opportunities to extend into new markets. If successful, that could boost growth and help the company keep paying a high level of dividends. SSE is the kind of high income share I like so I’ll keep an eye on it, but I’m in no rush to add it to my portfolio just yet. 

My favourite FTSE 100 stock

As a more highly rated FTSE 100 share, 2022 to date has been tougher for beverages group, Diageo (LSE: DGE). For me though, that makes it more tempting to buy the shares, especially after its strong recent results.

Last week’s first-half report showed that net sales rose 15.8% to £8bn, while operating profit at the Guinness, Johnnie Walker and Tanqueray maker rose 22.5% to £2.7bn and the interim dividend was lifted by 5% to 29.36p a share.

One of the big questions when it comes to investing in the shares now is: can it grow enough to justify a P/E of 30? That’s tricky to answer and some investors will undoubtedly come to the conclusion that it’s not. Also, as a higher rated share, any bad news is likely to see the shares fall hard. 

There’s no doubt it’s expensive, but I think high margins, strong brands and international sales all combine to make it a high-quality company. 

Diageo has been growing its dividend continuously since the 1990s, so it’s a very steady company with a large and still-growing international customer base. It has adapted well to increased demand for whisky and gin and what consumers want to drink generally. Also important in inflationary times is the fact that it has pricing power, especially as it owns premium brands and less-price-sensitive drinkers.

This all bodes well for a share I already hold and which is without doubt my favourite FTSE 100 stock. I’ll be adding more. Chin-chin.

Andy Ross owns shares in Diageo. The Motley Fool UK has recommended Diageo. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

As a result of inflation, which is sky-high right now, UK interest rates are rising. In December, the Bank of England lifted its base rate from 0.1% to 0.25%. Tomorrow, the central bank is expected to raise rates again, to 0.5%.

Higher interest rates are likely to benefit many companies that operate in the financial services sector. With that in mind, here’s a look at two FTSE 100 stocks I’d buy today to capitalise on the rate-rising environment.

Higher interest rates are good for banks

One stock that certainly has the potential to move higher as rates rise, in my view, is Lloyds Banking Group (LSE: LLOY). It’s the largest lender in the UK with loans of over £40bn.

I believe Lloyds shares could rise as UK interest rates climb because banks tend to earn a large chunk of their income from the spread between their borrowing rates and their lending rates. The higher interest rates are, the larger the spread they can generate. This means higher rates are great news for Lloyds.

Lloyds shares have had a good run over the last 12 months, rising more than 50%. However, the valuation on the stock remains low. Currently, it has a forward-looking price-to-earnings (P/E) ratio of just 8.1. That’s well below the average FTSE 100 P/E ratio. This leads me to believe there’s room for further upside here.

Of course, there are risks to my investment thesis. One is general market volatility. When markets are turbulent, Lloyds shares also tend to be quite volatile. For example, during the market sell-off last month, Lloyds fell more than 10%. We could see its shares pull back again this year if volatility returns.

All things considered however, I think the risk/reward proposition here is favourable with interest rates rising. 

Share price upside

Another FTSE 100 company that could benefit from higher rates is Hargreaves Lansdown (LSE: HL). It’s the largest investment platform in the UK, with assets under administration of over £100bn.

The reason Hargreaves Lansdown could do well as rates move higher is that the company earns money on clients’ cash deposits. Last financial year, for example, it generated revenue of around £51m from cash deposits. The year before, it generated £91m in cash revenue. If rates move higher, Hargreaves’ revenues are likely to get a significant boost. This should lift profits which, in turn, should boost the share price.

Hargreaves Lansdown shares have underperformed over the last few years and as a result, the stock’s valuation is now much lower than it used to be. For the year ending 30 June, analysts expect the group to post earnings per share of 54p. This means the P/E ratio here is about 25.

I think that valuation is quite reasonable, given the company’s market position and long-term growth potential. So I wouldn’t be surprised if the stock moves higher as interest rates rise.

One risk to consider here is competition from new rivals. Companies like Freetrade and Trading 212 have been having a lot of success recently due to their low fees.

I’m confident in relation to the growth story here however. I’ve used a lot of investment platforms over the years, and I think Hargreaves Lansdown has a world-class platform.

Edward Sheldon owns Hargreaves Lansdown and Lloyds Banking Group. The Motley Fool UK has recommended Hargreaves Lansdown and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

There are many ways to invest my hard-earned salary. Once, I bought a house at auction, renovated it, and had two options: sell it, or rent it out. In the end, I chose to sell. The potential rental income was attractive, but it would have required quite a lot of management. This is why I decided against becoming a buy-to-let landlord.

Instead, I used the proceeds from the house sale to make these alternative investments.

Alternatives to a buy-to-let

Real estate is still a good place to invest, in my view. But there are other options aside from a buy-to-let.

My first choice investment was to buy shares of companies with exposure to the property market. I first bought Rightmove, and then Belvoir, as they bring a good amount of diversification to my portfolio.

Rightmove is the largest online property portal in the UK. It has an excellent network effect because most homebuyers use the platform. Therefore, there’s a very good chance a property seller would list on Rightmove’s platform because it has the biggest audience.

Belvoir is a bit different. It’s a franchise group of estate agencies specialising in both lettings and property sales. This brings additional diversification to my portfolio as it’s an agency-led business and not an online platform. The company has been trading well recently, and upgraded its expectations for profit before tax for the full-year to 31 December.

Rightmove and Belvoir do have risks. For a start, they’re both exposed directly to the UK housing market. Any slowdown in home sales or lettings would likely lead to reduced profits for the companies.

Diversifying my options

Another complementary investment I’d consider is real estate investment trusts (REITs). These are companies that specialise in owning and managing property. If I bought shares in one, it would mean I wouldn’t have to manage the property myself, but still have an allocation to the sector in my portfolio. The shares trade on an exchange, just like other stocks, so there’s still a risk of share price volatility in my portfolio. REITs are also affected by occupancy rates just like a buy-to-let. If this drops, such as during a recession, rental income will too. This would likely cause my investment to fall in value.

There are many REITs to choose from in sectors such as warehousing, supermarkets, and traditional retail outlets. It’s an added benefit of buying REITs in my portfolio because they’re a good way to add diversification away from the UK housing market.

In the industrial space, I’d buy shares of Tritax Big Box, Urban Logistics and Warehouse. What I like about these is that they’re well placed to take advantage of the booming e-commerce sector. Each company manages critical logistics centres and prime warehousing space. I certainly wouldn’t be able to invest in this area as a buy-to-let investor!

One final REIT I’d buy is Supermarket Income. It manages a portfolio of real estate that large supermarket brands rent out. The income is also inflation-linked, which brings some inflation protection into my portfolio too.

I do still like the idea of buy-to-let investments, and maybe I’ll revisit it one day. But for now, I’m happy that I’ve got exposure to the property sector in my portfolio using these alternative investments instead.

Dan Appleby owns shares of Rightmove and Belvoir. The Motley Fool UK has recommended Rightmove, Tritax Big Box REIT, and Warehouse REIT. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Key points

• Apple had a record-breaking last quarter of 2021
• One important area of growth is its services business which is performing strongly
• Though there are some headwinds, I believe the price of this tech giant’s stock is set to rise

The recent report of strong sales figures from Apple (NASDAQ:AAPL) saw its share price rising about 5%. Despite that, it’s currently still down from its all-time high of $182.94 earlier in the year. At the time of writing, the tech giant’s stock is trading at around $170, significantly up from $135 at the beginning of February 2021, but here’s why I think Apple’s stock still has a lot further to rise. 

An impressive quarter

The company posted record revenue of $123.9bn for the fourth quarter of 2021, an 11% gain from the year before. This looks even more impressive to me given the backdrop of global supply chain issues and the ongoing Covid pandemic.

In the quarter covering October to December, the firm beat analysts’ estimates for sales in every product category except iPads. It also reported a net profit of $34.6bn. 

An increasingly important segment

Though the iPhone still makes up about half of the company’s sales, an increasingly important source of revenue is the tech giant’s services business. This includes software sold through the Apple store, storage space via iCloud and streaming services such as its music, television and fitness subscription platforms.

This is an area I’m paying close attention to as some analysts see this segment as a more reliable revenue source than its physical products. In the quarter, this segment saw sales of $19.52bn, up 24% year-on-year.

To put this into perspective, this is more than the combined sales of iPads and its Mac computers.

More good news to come?

During the course of 2021, the share price increased by around 30%. Despite a jump of around 5% in the stock following the earnings report, at the time of writing, it’s still down around 6% year-to-date.

Why might that be? Well, the tech-heavy Nasdaq is down significantly this year as investors switch from momentum stocks to more value-oriented companies. If this trend continues, this could understandably hurt Apple’s share price.

Additionally, governments across the world seem to be targeting large technology firms and any kind of crackdown could hurt the price of its stock. Plus Apple’s products are high-end items. If world inflation soars, or the global economy falters, then sales could decline in favour of more price-competitive brands.

That said, I’m still bullish on this stock.

Apple’s turnover increased by around 30% in 2021 and although average annual revenue growth over the last five years was closer to 10%, that’s still an impressive number. The company’s profitability seems to be improving (from an already strong baseline), with the gross margin increasing every quarter for the last few years. Free cash flow is also high, which will help the company continue buying back shares as it’s done over the past few years. All of this should help drive the share price higher. That’s before even taking into account potential new products such as self-driving vehicles and wearable headsets targeting the metaverse.

In investing nothing is certain, but I’m positive about this tech giant’s stock. For 2022 and beyond, I’m hopeful that Apple’s share price will rise and I’m seriously considering adding it to my portfolio soon. 

Niki Jerath does not own shares in Apple. The Motley Fool UK has recommended Apple. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.