Look, I know you Bitcoin maxis are gonna hate me for this but, there is a slight correlation with BTC’s slowing supply and with what Apple has been doing since 2013.

“Well, Bitcoin supply is capped!” Yeah, yeah, calm down dude. We are talking about investments here and I see great opportunity in buying both whenever we see dips. Let’s face it, much like BTC, Apple is here to stay.

“What about decentralization!? Apple isn’t decentralized!” If you want to put your life savings in one high risk investment for the rest of your life, then just do it. I am here to invest in what I believe in and trust me, when I say, “As long as the global elites, have a stake in Apple then the stock is only going to keep growing.” Who knows, it might become a stalwart one day and just leak out small dividends.

So What is This Correlation?

Since 2013, we have seen Apple’s outstanding shares decline consistently. This means that the total number of shares is decreasing. As the total amount of shares disappear, this should directly correlate to more value being provided to shareholders. But, how?

According to yCharts:

The volume of stock shares issued by the company and in the hands of the public. This number entails how much is being traded in the open market. A decreasing shares outstanding over time may be the result of company buybacks. Companies frequently make stock buybacks and retire those buybacks as treasury stock.

Shares outstanding represents a company’s market value spread across the amount of shares outstanding. The amount of shares outstanding is frequently used in ratios such as Earnings Per Share.

https://ycharts.com/glossary/terms/shares_outstanding

What About Ethereum?

I have been somewhat of an ETH maxi myself over the last couple of years but, to be fair, I have lost hope with the crazy high gas fees. Nonetheless, Vitalik Buterin and his pals over at the Ethereum Network have worked to make ETH deflationary.

The facts of the matter is that supply of ETH just cannot burn fast enough to make Ethereum truly deflationary. Take a look at the charts above, only momentarily do we see burn rate out pace supply creation. Inflation of the coin currently hovers between .5 and 1% annual inflation rate. Since the Panda merge, we have seen total inflation percentage of -.166%. That’s more than can be said for the rest of the world, huh?

But Wait, There Is More!

AAPL is not the only ticker, with this trend. Below are a list of 4 other stocks that are gobbling up shares to hoard in their treasury.

GOOGL

This one speaks for itself, you probably found this article on Google. This beast of a company started their buyback program in 2019.

META

I get it, the metaverse let us down but, I think there is still hope. The horizon is way off in the distance. Maybe that Warren Buffet 5-10year holding period is what we should have targeted. META has provided incredible returns since COVID-19. Not to mention, look at how they are buying up their shares since 2018.

DELL

DELL went crazy a couple of days ago with AI news. I think DELL has always been an incredible company but, seeing them buy back shares and dive into the AI craze is very telling about where they are heading. I am looking for a deep pullback for a swing entry that will pay for me to enter long term. Does that make sense? I do this a lot with stocks.

ADBE

Adobe is the mother of all buy back monsters. They started back in 2006 and just haven’t let up. I have been burned a few times trading options on ADBE but, for a longer term hold when buying the dip, Adobe is him!

Closing Thoughts

It is very clear to me that we are seeing and have been seeing major buybacks. Couple this idea with stocks that have solid fundamentals, staying power and the thirst to jump in the AI craze then I think we have a winning recipe here. Be patient, wait for technicals to give a valuable entry opportunity and enjoy the benefits of owning a “deflationary assets”. Who needs Bitcoin or Ethereum anyway?