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Published on April 19th, 2012 | by Randomguru

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Investing Notes: Apple, Inc. and Stock Investing

Let me be the first to say, that when it comes to the Stock Market and Investing in Stocks, there is so much more that I can learn.

Nevertheless, after a few years of slowly becoming familiar with Stock Investing, reading a number of books on the matter, and gaining experience over the years (sometimes through trial-and-error), I think I’ve develeoped my own strategy for managing my own portfolio in a sometimes volatile market.

My Stock Investing Philosophy usually boils down to Value Investing (investing in stocks and companies for the long run), buying a few stocks for short-term investing (usually about 1/4 of my total portfolio), and keeping a cash balance in the portfolio for future stock buying, should opportunities arise.

Apple, Inc. (AAPL)

Apple Stock (AAPL)

Now it doesn’t take a rocket scientist to see that a chart showing a 2 year history of Apple stock has risen substantially over that given time period. And, shares of Apple stock have risen even more rapidly in the past several months.

If you invested in Apple stock back in the early 2000′s when it was just $10 a share, and say you bought 100 shares of it and held on to it until today… you would have gone from an intial $1,000 investment to over $60,000!

Hindsight is 20/20 Vision

Of course, hindsight is 20/20 vision as they always say.

But it boils down to investing in a company for the long run, and investing in those companies because of their potential growth. Warren Buffett will always tell you to invest in a company for its value, while researching the financials and fundamentals of the company, so quite a bit of research would obviously have to be done even before you plunk down a single dollar to invest in a stock.

Apple’s Success

Who would’ve known Apple would be this successful?

Even critics say it’s “the hype”, but let’s face it… around 2007 when the iPhone came out, people were camping out and forming lines all the way around the block just to get one of those shiny new “toys”. Call it “hype” if you want, but the bottom line is that Apple offered the customer just what he/she wanted… a sleek, elegantly designed smartphone that was easy to use and had a lot of uses all rolled into one.

And as the words of the legendary Apple guru Steve Jobs echoes on YouTube and throughout the Internet, his legacy lives on, and he made technology accessible to the masses while making it very fun.

Should You Invest in Apple Stocks?

The question now remains…

Is it too late to invest in Apple stocks? I mean, it’s over $600 a share last I checked, but some experts say the stock is over-valued.

The only thing that makes me want to buy more shares of Apple is the interview I watched on CNBC, where Apple co-founder Steve Wozniak predicted that Apple stocks could very well rise to $1,000 a share.

Given the 2 year trend and rise of Apple stock, it could very well happen by next year.

Who knows, but the one thing to keep in mind is that everyone should be (and probably already is) following this company and it’s stock price closely over the next several months.

To Invest or Not To Invest…

I’m not telling everyone to invest in Apple stocks right now… But, it probably wouldn’t hurt to buy a few shares just in case the stock does reach $1,000 a share.

Do the research. Keep an eye on the company. Apple is sitting on $100 billion of cash on hand, and it’s obvious the company has been doing extremely well in recent years!

So, invest, but let the chips fall where they may…

Disclaimer

I am not a professional stockbroker or stock market analyst. I present my knowledge and trading ideas as a means to share and document my own experience in stock investing. This blog may feature trade ideas and recommendations to buy certain stocks and other investing vehicles. Ultimately, you are responsible for your own actions in the stock market. And, it is always recommended that you do your own research and/or consult with a professional stockbroker when making investment decisions.


 

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About the Author

is a musician (drummer and pianist), avid stock investor, hiker, coder and web publisher. Follow Randomguru on Twitter @randomguru




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