Thoughts on investing in Apple?

📈 Investing & Markets Stocks
#1

Salam everyone,

So happy to be part of this community!

I’ve been thinking a lot about whether I’m comfortable investing in Apple. It’s obviously a large part of the Islamic mutual funds like Amana (I believe from memory it’s about 8.3% of their portfolio). And it’s grown like crazy over the last 12 months obviously (+50% or so YoY).

On the other hand, I have two concerns:

There’s both the direct investment question, but then also the Amana mutual funds question as well.

Thoughts? Been struggling with this over the last few months.

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#2

Hai! I have the same dilemma! Under Services, they have all kind of revenue streams including their service fee for App Store which i think form part of the majority of Services. The most obvious revenue stream that now we must avoid are Apple Tv+, Apple Music and Interest on Apple card, which are bundled under Services revenue. But now since we don’t have privy to that segregation of Services Revenue, it pretty hard to deduce. So it really comes to judgement and all of public information on how big those mentioned revenue streams.

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#3

For what it’s worth, the Halal Investors site rated Apple as Entirely Uncomfortable due to their low ESG score.

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#4

Supply chain issues are complicated and can take time to resolve. That said, it looks like Apple has started doing some course correction.

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#5

I have been grappling with the question of investing in Apple, Inc. too. In my limited and flawed opinion is that as of today, the Apple’s “Questionable” percentage is at 19.32%; that to me is a bit hard to justify any investment; and then the forced labor of Uyghur muslims is the other thing holding me back.

This forced labor issue is not Apple, Inc. specific; and since China seems to have leverage over a majority of manufacturers; what’s the best approach to avoid investing in those companies?

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#6

Could you please share which halal investor site are you referring to

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#7

Unfortunately I can’t post the link, but there’s a website called Halal Investors that publishes “report cards” for various stocks and grades them on Business, Financial, and ESG.

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#8

I feel the exact same way, any ‘Islamic’ fund is investing in them and I’ve been avoiding buying them individually but for long term I do wanna invest in a fund and it does place me in a dilemma

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#9

That is another advantage of a Separately Managed Account (SMA) vs an ETF or Mutual Fund.

Even though the Portfolio Manager managing the SMA may have a particular security in the model
portfolio, the account holder can add a list of excluded securities ( say Apple). When the Portfolio Manager places an order to buy a security that is excluded, the software ignore that order.

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