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If you're bullish on AAPL, this is the kind of stuff that investors can and should take advantage of. Apple is the same company yesterday as it is today. It's a
by edawerd 10y ago
If you're bullish on AAPL, this is the kind of stuff that investors can and should take advantage of. Apple is the same company yesterday as it is today. It's ability to generate cash is the same today as it was yesterday. Carl Icahn saying something on TV doesn't change that.
From one of Warren Buffet's annual letters:
“If a moody fellow with a farm bordering my property yelled out a price every day to me at which he would either buy my farm or sell me his — and those prices varied widely over short periods of time depending on his mental state — how in the world could I be other than benefited.
If his daily shout-out was ridiculously low, and I had some spare cash, I would buy his farm. If the number he yelled was absurdly high, I could either sell to him or just go on farming.
Owners of stocks, however, too often let the capricious and irrational behavior of their fellow owners cause them to behave irrationally.
Because there is so much chatter about markets, the economy, interest rates, price behavior of stocks, etc., some investors believe it is important to listen to pundits — and, worse yet, important to consider acting upon their comments."
- prodigal_erik 10y agoThat works because farms have fundamental value. If it's a baseball card (no dividends, no buybacks) you have to pay attention to what randoms believe because selling to them is the only way you can realize any return.
- aaronbrethorst 10y agoAAPL does, however, have both dividends and buybacks.
- robomc 10y agoAnd a huge pile of cash, right?
- icebraining 10y agoAnd another pile of patents.
- dingo_bat 10y agoAnd a global horde of loyal customers who will buy their products at above-market prices.
- imh 10y agoIt's not saying that apple is suddenly worse than yesterday. It's that new information may make you suddenly realize you overvalued it yesterday, right?