Taking a bite out of Apple
Moustafa is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Apple (NASDAQ: AAPL)has been one of the greatest turn around stories of the last decade. I remember in the early 2000's when Apple stock split at $80, who at that time could speculate it would be worth over $600 a share less then a decade later (maybe the Motley Fool who had recomended it way back then). Apple continues to destroy earnings estimates each quarter and continues to grow adoption of its iPad, iPhone and computing devices. Apple is probably one of the most widely held stocks in North America as I would imagine almost every mutual fund, major broker, and large investors have some position in the stock.
There now comes murmurs of discontent, people saying that the fall of Rome is near and the barbarians are soon to be at the gate. Aswath Damodoran, a valuation guru with a much more followed and respected blog then my own, indicated that he had sold his shares and has caused some to reevaluate their love affair with the company. Though he fully admits that he still sees Apple as a strong company, he felt his gut was saying it was time to move on and since he bought his shares in 1997 has made a considerable return on his investment.
In my humble opinion the share price of Apple should really never be an issue for any investor as we are buying the business not the share price. Apple's business does have risks but those are mitigated by a vast moat of liquid cash, continued acceleration in adoption of their products worldwide and the continued development of the iCloud which is the next foreseeable step in the evolution of personal computing. I am still very bullish on Apple and regardless of price will keep holding my shares for the near term and long term unless the fundamentals of the company and its prospects of continuing to build its business shift strongly in a negative direction.
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