too late for Apple?

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Replied by FrankN on topic Apple

Remember this comparison is not apples to apples (see discussion below) as Apple had a stock split. I would also agree a longer term approach is needed if you want to obtain positive returns in the stock market. I am not sure if its exactly 5 years, but generally the longer outlook the better chances you are giving yourself of growing your investments.
2 years 10 months ago #1

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Replied by Moneyes on topic Apple

Cents wrote: Five years ago, Apple was at $308. I just checked and it's at $94 and change right now. I don't see Apple ever really tanking, so I'm thinking now is a great time to buy and hold until it gets back in the $300 zone, even if it takes several years. What are your thoughts?


Most experts agree that if you really want to make a sure profit through investing, you have to give the investment 5 years. So it seems like you have the right mindset.
2 years 10 months ago #2

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Replied by FrugalFran on topic Apple

I think it's important to always consider other brands as well as any up-and-comers that may be out there. You never know when even the most trusted name in technology is going to come out with a device that tanks.
2 years 11 months ago #3

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Replied by FrankN on topic Apple

You also have to consider market penetration for Apple as well as Google introducing its new phone as well.
2 years 11 months ago #4

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Replied by Medi on topic Apple

patse wrote:

Cents wrote: Five years ago, Apple was at $308. I just checked and it's at $94 and change right now. I don't see Apple ever really tanking, so I'm thinking now is a great time to buy and hold until it gets back in the $300 zone, even if it takes several years. What are your thoughts?


I really like this idea. I don't see Apple ever tanking either. I think that the company has struggled with some products lately but I don't see it ever really going away. Almost every where you look someone has an iPhone or iPad. Thanks for the heads up about this stock.

When Samsung had to brand their Galaxy Note 7 a failure, I immediately thought that Apple would be the first to benefit from this tragedy, especially because some of their latest products were already losing popularity to the rivals. Have you considered other brands?
2 years 11 months ago #5

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Replied by FrankN on topic Apple

That is an interesting question. There are a lot of articles and studies out there discussing this topic. I would say retail companies, companies with a big brand recognition, etc. do there stock splits because they argue it increases their brand awareness just as much as advertising/marketing.
3 years 2 weeks ago #6

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Replied by Breakinger on topic Apple

FrankN wrote: Well...people certainly try to argue that some splits are good, but it is really financial trickery. The argument is a high stock price (like Apple at over $600 a share) will exclude certain buyers as some people cannot afford to buy the stock at $600 a share. A stock split lowers the price so maybe the average investor can purchase a few shares. In theory that could raise the price as you have more buyers. In reality, you aren’t changing anything about the business and the stock shouldn’t be worth anything more. If you have a pie and cut it into 8 pieces, is that pie any different than a pie that was cut into 16 pieces?


That makes so much more sense now, Frankn. Thanks for explaining how stock splits worked. I've always wondered how us regular people could afford to invest in some of these more expensive stocks. Do most companies that own higher stock prices normally split the stocks like this? It seems like after awhile there wouldn't be as many people buying their stocks.
3 years 1 month ago #7

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Replied by FrankN on topic Apple

You should not have any fear of a stock split as it doesn't change your total investment
3 years 6 months ago #8

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Replied by FrugalFran on topic Apple

Ahhhhh, okay. Thank you for that great explanation! I'm still wondering if buying a stock that has $600 potential at $94 is a good idea. My fear would be that I'd hold for too long and they'd split it again before I sold. Does that make sense?
3 years 6 months ago #9

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Replied by FrankN on topic Apple

Well...people certainly try to argue that some splits are good, but it is really financial trickery. The argument is a high stock price (like Apple at over $600 a share) will exclude certain buyers as some people cannot afford to buy the stock at $600 a share. A stock split lowers the price so maybe the average investor can purchase a few shares. In theory that could raise the price as you have more buyers. In reality, you aren’t changing anything about the business and the stock shouldn’t be worth anything more. If you have a pie and cut it into 8 pieces, is that pie any different than a pie that was cut into 16 pieces?
3 years 6 months ago #10

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Replied by FrugalFran on topic Apple

That's an interesting point, Frank. Can you give a brief explanation of how to adjust for the stock split? Also, aren't some splits a good thing for the stockholders? It was my impression that some could be very beneficial.
3 years 6 months ago #11

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Replied by FrankN on topic Apple

This is an apples to orange comparison. AAPL did a 7 to 1 reverse stock split so comparing the $308 to $94 stock price is incorrect. On June 6, 2014, Apple shares closed at $645.57 apiece. The following Monday, they opened at $92.70 each after the stock split took effect. If you want to compare the price you will need to adjust for the stock split.
3 years 6 months ago #12

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Replied by Cents on topic Take a bite

Egghead wrote: It may well be several years before they find their feet again.


That's fine by me. I don't mind investing and holding for the long term. I wonder, though, if this ongoing battle Apple is having with the FBI over unlocking those terrorist phones is going to hurt them.
3 years 7 months ago #13

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Replied by patse on topic Apple

Cents wrote: Five years ago, Apple was at $308. I just checked and it's at $94 and change right now. I don't see Apple ever really tanking, so I'm thinking now is a great time to buy and hold until it gets back in the $300 zone, even if it takes several years. What are your thoughts?


I really like this idea. I don't see Apple ever tanking either. I think that the company has struggled with some products lately but I don't see it ever really going away. Almost every where you look someone has an iPhone or iPad. Thanks for the heads up about this stock.
3 years 7 months ago #14

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Replied by Egghead on topic Take a bite

I agree that Apple is worth a bit of a gamble. The two third drop in price between the stats quoted is fairly major if you bought at the high end, but fine for the rest of us.

It may well be several years before they find their feet again.
3 years 7 months ago #15

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