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I used to find most stocks including Apple to be overvalued a long long time ago. Even when Apple was worth 500 billion. Thank god I never shorted a stock in my
by 1cvmask 5y ago
I used to find most stocks including Apple to be overvalued a long long time ago. Even when Apple was worth 500 billion. Thank god I never shorted a stock in my life. Would have probably lost my shirt especially with Tesla. This is despite the fact that I knew that the Fed printing money would lead to an asset price inflation.
- zpeti 5y agoAdding 40% to the money supply and doing most of it via financials institutions is almost a guarantee of a rising stock market.
- pcbro141 5y agoOvervalued based on what metrics?
- enos_feedler 5y agoPrice/earnings ratio could be one, compared against its own history. However, the company is undergoing a structural change in how they generate earnings (hardware -> software -> services). And the brand is stronger than ever. And the products are stickier than ever. There are also adjacent markets for Apple to run it's iPhone playbook with very high probability of success (tvs, cars, etc). So perhaps a higher P/E is justified. And I give AR/VR a contribution of zero. I think Apple itself will grow into it's P/E quite well, but there are so many other stocks that don't justify their price. For that reason, I've sold out. It's the only position I had the last few years.
- Olumde 5y agoApple seems overvalued. It took 42 years to reach a valuation of $1 trillion, and just over 2 years to reach $3 trillion. Que???