Comments on Saving to Inve$t: Oh no....I just bought $16K worth of Apple and am ...

why so much?$5K is enough to invest in AAPL

2008-08-25T18:56:00.000-04:00

why so much?

$5K is enough to invest in AAPL

At least you did not buy CROX at $40 like I did. B...

2008-08-08T11:56:00.000-04:00

At least you did not buy CROX at $40 like I did. Bad decision...very bad...

@ Ben - Definetly long term for me now. Still it i...

2008-08-04T11:42:00.000-04:00

@ Ben - Definetly long term for me now. Still it is dissapointing to see the stock continue to fall despite such a strong future. I was at an Apple store recently and there were still lines for the new iphone 3g, almost a month after it was released! amazing.

156 now. i would stay in long term and maybe buy ...

2008-08-01T16:43:00.000-04:00

156 now. i would stay in long term and maybe buy some more at these lower prices. i say good investment.

anonymous #3 - Thanks for the words of caution. I ...

2008-07-08T09:00:00.001-04:00

anonymous #3 - Thanks for the words of caution. I am thinking of getting some puts on the stock before earnings are released.

Anonymous # 4 - Okay, maybe I was a bit idealistic with the College idea. However my kid has 18 years before college, Apple should have split many times over by then if current growth continues for the next 3-5 years (which is definetly possible). I am holding on to the stock for the long term, this post was exaggerated to make it more interesting and catchy. I am not really worried about a $300 or even $2000 loss in the near term per some of my earlier comments.

@ Sirbeef: I am not a day trader. Per some of my earlier comments and follow up post I explained the reasons I bought the stock. Check them out. I know you are a strong dividend advocate, but I like to have some of my portfolio in growth stocks given my investment horizon and better risk/reward prosspects.

@ Anonymous # 5 - Thanks for the encouragement. I am holding on for the long term and have a lot of faith. Earnings, coming up soon, should be interesting. Good to see you have done so well. If you still hold your stocks now you have got your self a triple bagger. Excellent.

Thanks to everyone for stopping by and making a comment.

I bought 500 shares of Apple two years ago at $65....

2008-07-07T12:00:00.000-04:00

I bought 500 shares of Apple two years ago at $65. Within weeks, it was trading well below $60. I was probably just as worried as you seem to be now. But I hung in there and look at it now!

Keep the faith!

Are you a day trader, or long term? Because anyon...

2008-07-01T09:00:00.000-04:00

Are you a day trader, or long term? Because anyone who is long term and would invest in a no yield, no dividend stock needs to have their head examined.
And now AAPL is down to $167.44.
Nice.

OK, A couple of things. First if AAPL went to $60...

2008-06-18T22:48:00.000-04:00

OK, A couple of things. First if AAPL went to $600 how on earth would that pay for your kid's college?? At $600 your 85 shares are worth $51k. Even today that would barely cover two years at any good school. And college costs rise way faster than inflation.

Second, if you are fretting about losing a few hundred dollars than you really shouldn't be invested in the market. At least not in individual stocks. I don't day-trade and most of my investments are held for well over a year. I have a very conservative portfolio, and even then it swings by as much as $50,000 in a single day. You need to be willing to deal with some volatility if you're invested in stocks, especially in this current market. I like the long term argument for AAPL as well and I've been holding it for years and plan to continue holding it forever maybe. But I also wouldn't be too shocked to see it go down another $50 bucks. This market is worse than you probably imagine.

I took a 15% loss in 5 days when I bought apple ea...

2008-06-05T14:41:00.000-04:00

I took a 15% loss in 5 days when I bought apple earlier this year. Take precautions.

@ James - thanks for the calming words and your st...

2008-06-05T08:42:00.000-04:00

@ James - thanks for the calming words and your story. I am much more relaxed about my investment now.

@ hitesh - I hope it hits $600! That'll pay for my kids college. I am hoping for a $225 to $250 target by year end.

@ anonymous[2] - DCA does work and normally I would use it to build a position, but I felt that getting in before June 9 was key to benefit from the most upside. Tiime will tell.

@ Daveed - It is a medium term stock for me and so am now more comfortable after the relatively sudden day 1 loss. Thanks for your words for encouragement.

@ frank - Thanks for sharing your history and positive outlook. With this and other comments I feel much more comfortable about my invesmtment and the research I did.

@ KC. I am investing, not trading. I am investing, not trading....thanks! I think the amount I started the position with is what caused me to obsess. For me personally it is the biggest one time investment I have made here.

You are INVESTING, not TRADING. Keep repeating unt...

2008-06-05T00:49:00.000-04:00

You are INVESTING, not TRADING. Keep repeating until you stop obsessing about your investments.

As someone that has been making money off of Apple...

2008-06-04T17:36:00.000-04:00

As someone that has been making money off of Apple trades for the past 6 years, I can easily say that this is not a permanent problem. I hoping to get in on some more calls tomorrow before the announcement.

For the record, I also think they're going to announce a portable tablet type device. That could be wishful thinking but it looks like the next logical progression...

AAPL is a very volatile stock, and if short-term g...

2008-06-04T17:09:00.000-04:00

AAPL is a very volatile stock, and if short-term gains are what you were after, I'm guessing yesterday wasn't necessarily the best time to buy (though it may not be a bad time either). Next weeks' announcement may make the stock go either way: I've been long AAPL for a couple of years, and follow the technical aspects of the company closely (I'm a software developer), and what seems like awesome announcements sometimes make the stock dive (or not).

However, in the medium-long term, I do think you should see you $16K go up by a few K$'s, and in the event the Monday keynote does indeed propel the stock up, that sort of perspective made it a good decision IMO.

you have guts man ...my opinion the stock is going...

2008-06-04T16:33:00.000-04:00

you have guts man ...
my opinion the stock is going to trade much lower
15-20% after the June 9 show
however I am long and I owned this stock since 1999
and I trust an share Steve Job's vision.
if you can take the ups and down and have enough balls to buy more when the stock trades lower
then in 3-4-5 years you will be very happy
but remember to buy smaller lots, there are always corrections and more opportunities to buy more.
Dollar cost averaging works

That's true ! Think of this as a long term investm...

2008-06-04T13:44:00.000-04:00

That's true ! Think of this as a long term investment and you wanna sell your AAPL stock at $600 in 2009 !!! no kidding, sales of iphones in all those highly populated countries will prove this sooner.............

I felt the same way as you did back near the begin...

2008-06-04T12:57:00.000-04:00

I felt the same way as you did back near the beginning of the year when I bought $5k worth in advance of earnings at $161/share. I thought I was getting a pretty good discount off the high of around $200, and would see a nice bounce when Apple announced their big holiday numbers. Well, not too long after my purchase came the slide to a low of $115. Needless to say, I wasn't feeling too good at the time, but I kept telling myself I bought as a long-term investment, and now that it's over $185 with big things to come this year, I'm quite pleased. Ultimately, I think you will be too.

These are 2 other articles/blogs with some great i...

2008-06-04T11:28:00.000-04:00

These are 2 other articles/blogs with some great info on upcoming stock price action with Apple:

WSJ:

http://blogs.wsj.com/marketbeat/2008/06/03/the-end-of-apples-golden-age/?mod=MostPopular

Fortune Blog:

http://apple20.blogs.fortune.cnn.com/2008/06/04/investing-how-to-cash-in-on-the-3g-iphone-buzz/

Thanks pfstock. I over reacted a bit today as I do...

2008-06-03T17:17:00.000-04:00

Thanks pfstock. I over reacted a bit today as I do have a long term view on this stock and off course had to make the post a bit interesting. While it does make up 40% of my portfolio currently I am planning to invest about $10K more (my bonus this year) in some Vanguard funds, so it should come down to about 25%. I'll know when I do my next portfolio update.

However you are right, a more prudent approach would have been to start with a smaller holding of 5K at a time. Still, I wanted to get in ahead of the announcement next week about the new i-phone and felt that this is the cheapest the stock will be for a while. It finished up at $185 today so my loss was not that much.

Good to have discovered your blog as well, I will be adding you to my blogroll.

Cheers,
Andy.

First of all, thank you for leaving a comment on m...

2008-06-03T16:25:00.000-04:00

First of all, thank you for leaving a comment on my blog, PFStock; I appreciate it. It looks like you have a nice blog here.

If you really believe that AAPL will be $225 by the end of the summer, then you shouldn't fret about a decline of a few points here and there. But, I sense that you are not completely certain about your recent purchase. In which case, 40% of your current portfolio is perhaps too big an initial investment. Instead, you might consider making smaller purchases over time, or diversifying some more.