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rhett7660

macrumors G5
Jan 9, 2008
14,373
4,495
Sunny, Southern California
A word of warning: I registered for the motley fool web site a while back and got TONS of spam from them. Maybe they've improved, but the whole experience really soured me on them.

Sorry to hear about that. I didn't get spammed when I first joined and it was a free trial back in the day.

I hate it when sites do that...... Some great information but if the freaking bog downs your email.....
 

rhett7660

macrumors G5
Jan 9, 2008
14,373
4,495
Sunny, Southern California
As someone who holds AAPL as my single largest investment, I'd answer "because it's too volatile." You'd certainly need to consider your tolerance for risk, which I think most people tend to underestimate.


Bingo.. can you hadle knowning you put 5-10K in a stock or maybe just a couple of hundred dollars, one day it up +5% the next it is down -20%. Knowing you just lost a significant partion of your investment...?

Or do you need to know that your stock is performing as scheduled with little or no hick ups?
 

deputy_doofy

macrumors 65816
Sep 11, 2002
1,466
410
AAPL is definitely a volatile stock. I can only afford to buy fractional shares at this time, but I do believe it has a more potential upside rather than downside. Even if Apple truly does lose being tied to a single carrier and getting monthly payments from them, they will get 30% of developer rates and I anticipate that to be HUGE.

If only I had the money back in 2000 or 2001 when the stock was $13-$19 pre-split. Dang! :p
 

robzr

macrumors member
May 4, 2006
92
18
Portland, OR
I think you should just buy it. Sharebuilder is a nice online broker. If you ask me, AAPL in the long term is a no brainer. Vista is a flop, OS X is getting more and more refined every day, leaving MS in the dust. Apple has a single digit marketshare which is growing every day and reasons that were present years ago why people "must" use MS are dying one by one. MS has no vision, Apple is working on stuff nobody even knows they need yet (but they will). And lets not even talk about the iPhone.

Who cares how volatile it is, this guys not a day trader. Buy as much as you can afford, and retire on it.

Rob
 

IJ Reilly

macrumors P6
Jul 16, 2002
17,909
1,496
Palookaville
Bingo.. can you hadle knowning you put 5-10K in a stock or maybe just a couple of hundred dollars, one day it up +5% the next it is down -20%. Knowing you just lost a significant partion of your investment...?

Because it can easily drop 20% in a week.

Well, it isn't quite that volatile, but over time it's going to be a challenge to look the other way when the bottom is falling out for no obvious reason. We did see a 35% decline between early January and mid-February, about half of which has since been made up. The real challenge with a stock like AAPL is to avoid the temptation to move with the herd, which is a great way to get burned with any stock, but particularly one like AAPL, which trades so much on emotion.
 

deputy_doofy

macrumors 65816
Sep 11, 2002
1,466
410
I think you should just buy it. Sharebuilder is a nice online broker. If you ask me, AAPL in the long term is a no brainer. Vista is a flop, OS X is getting more and more refined every day, leaving MS in the dust. Apple has a single digit marketshare which is growing every day and reasons that were present years ago why people "must" use MS are dying one by one. MS has no vision, Apple is working on stuff nobody even knows they need yet (but they will). And lets not even talk about the iPhone.

Who cares how volatile it is, this guys not a day trader. Buy as much as you can afford, and retire on it.

Rob


Agreed. Unless Apple makes a serious misstep, the future is bright. Even if Steve leaves the company, Apple should be fine, assuming they follow Steve's path. The 1985-1996 Apple did not follow Jobs' vision and, hence, it tanked.

All Apple has to do is gain double its share and the stock should be phenomenal. Keep this in mind. The iPhone has HIGH developer interest. You CANNOT develop iPhone software on Windows so guess what these developers have to buy...
 

FunkyJunk

macrumors regular
Oct 17, 2007
219
0
Leesburg, VA, USA

My answer to that question is "because it's not a good idea to make ANY stock your 'main investment or a significant part of it.'" Diversification is key. Mind you, I do own some AAPL stock and I'm quite pleased with how it's going. I'm not, however, about to put all my eggs into one basket.

My wife worked at Worldcom back in its boom days. She knew a good number of people who put all their 401k money into Worldcom stock. You know how well that went for them. Catastrophic devaluation can and does happen, and the only way to protect yourself is to diversify.
 

rhett7660

macrumors G5
Jan 9, 2008
14,373
4,495
Sunny, Southern California
Lets not forget the question was

"No matter what your financial situation is, you don't want to make AAPL you're main investment or even a significant part of it."

"why not?"

No one is saying don't by the stock. Hell by as much as you can stomach. I think I would want to learn a little more about the company, then what is on a few message boards. Maybe start listening to what financial institutions are saying about the company. Pick up a few barrons newspapers(http://online.barrons.com/public/main) learn a little about on how big financial companies rate a company etc... Before you put your money into something.

I don't think Apple will have to many missteps.....
 

Much Ado

macrumors 68000
Sep 7, 2006
1,532
1
UK
As I think I said in a previous thread, the longer you hold a stock the less volatility tends to matter, (so long as you can roughly judge bottoms etc. to gain a little in dips). AAPL has been good for me so far as a long-term buy, and I see no reason to stop using it.

Also good to own stock of a company you can clearly judge the performance of in terms of product releases etc.

Anyway, iPhone deferred revenue + SDK = $$$
 

IJ Reilly

macrumors P6
Jul 16, 2002
17,909
1,496
Palookaville
As I think I said in a previous thread, the longer you hold a stock the less volatility tends to matter, (so long as you can roughly judge bottoms etc. to gain a little in dips). AAPL has been good for me so far as a long-term buy, and I see no reason to stop using it.

Also good to own stock of a company you can clearly judge the performance of in terms of product releases etc.

Anyway, iPhone deferred revenue + SDK = $$$

"Buy what you know" is always a good technique, if you buy individual stocks (which many investment pros will recommend against). I bought AAPL in 1997, so the volatility doesn't cut into my initial investment by any means, but it still hurts to see the stock drop by a third in six weeks. The impulse to pull the sell trigger is really hard to resist. Even when your cost basis is really low, the dollars are still fleeing from your portfolio like rats from a sinking ship, and it takes a lot of nerve to hang tough.
 

Much Ado

macrumors 68000
Sep 7, 2006
1,532
1
UK
IJ- wow, 1997? I presume you've worked the dips since then, or has it just been one enormous buy 'n' hold?

Knowing a stock does indeed help.
 

jackc

macrumors 65816
Oct 19, 2003
1,490
0
A lot of people just say, 'Well Apple is a great company with increasing market share so how can you go wrong buying it?' As if there is no such thing as a good company being overvalued.

I'm not saying AAPL is necessarily overvalued over the long term, but if you expect a repeat of the gains over the last few years I think you're wildly optimistic.

I happen to be a shareholder, so I wouldn't be talking down the stock if I didn't think hardly anyone was listening, just offering a bit of realism.
 

IJ Reilly

macrumors P6
Jul 16, 2002
17,909
1,496
Palookaville
IJ- wow, 1997? I presume you've worked the dips since then, or has it just been one enormous buy 'n' hold?

Knowing a stock does indeed help.

I've bought and sold some since then, but mainly buy and hold. The shares I bought in '97 I still have. It's worth keeping in mind that back in '97 the conventional wisdom was that Apple had one foot in the grave and the other on a banana peel. I'd like to claim that I was planning on a 3,000% return, but really I figured that the downside risk was minimal, so I took a chance.
 

Dave00

macrumors 6502a
Dec 2, 2003
884
106
Pittsburgh
Because of risk. You want to spread your investments among a range of diversified stocks (different industries, etc.) in order to protect your nest egg. No matter how great a company is, it can always have unforeseen problems. Bear Stearns, the 5th largest investment firm in America, had its value basically disappear overnight. And tech firms are a lot more volatile than investment banks (at least, traditionally.) AAPL was trading at over $200, went down to the $120's, and now is back up in the 160's. What happens if tomorrow, it comes out that iPods have been leaking lead or some other corporate catastrophe? There goes your savings. That's why you need to spread 'em out.
 

jodders

macrumors member
Mar 1, 2006
43
0
With the release of a 3g iphone possibly coming out in June, from a Trader's point of view, is it a good time to invest?
 

northy124

macrumors 68020
Nov 18, 2007
2,293
8
Ah wonderful Apple stock LoL if you have faith buy and hold, I'm going to use Charles Schwab US UK Site (In UK and want to buy US stocks, But you need $10,000 to use them if in UK and $1,000 in US), But I'd rather buy Voting/Controlling Stock instead of common stock what can you do.

My strategy is 'Buy and Hold' only sell when you need to or you think it's at it's peak.

Northy124
 

IJ Reilly

macrumors P6
Jul 16, 2002
17,909
1,496
Palookaville
No I meant er the like to take control of the company (Which would never happen but a man can dream a man can dream)

Same thing. If you own 50% +1 of the common stock, you control the company. Even if you own just one share, you get to vote it for directors, etc., at the annual meetings.
 

northy124

macrumors 68020
Nov 18, 2007
2,293
8
Same thing. If you own 50% +1 of the common stock, you control the company. Even if you own just one share, you get to vote it for directors, etc., at the annual meetings.

Oh I thought apple was the same as some other ones I've invested in as they have to entirely different options (Gets confusing), better read up a bit more before I go apple mustn't I.

Still new to this BTW incase you haven't noticed LoL

Northy124

Edit: Holding Companies, does anyone think it would be worth setting one up and trading under the company for added security, simplicity and what not or is that just the stupidest thing you have heard?
 
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