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I've honestly been surprised by how long the market's dislocation has been on this one. It's not common for a large cap stock that is highly covered by analysts

by cremnob 13y ago

I've honestly been surprised by how long the market's dislocation has been on this one. It's not common for a large cap stock that is highly covered by analysts and watched by investors. But the market's fears about Apple are my gain, and has become nearly 75% of my portfolio after tanking for the past ~9 months. Value investors all saw the opportunity in AAPL, but it's nice to have a media celebrity investor like Icahn act as the catalyst to reach fair value quicker.

mark_l_watson 13y ago
Wow, 75% of your portfolio in one stock? I am more of a chicken investor: hugely diversified over the US and International markets.
- hkmurakami 13y ago
  both approaches are totally fine. just depends on your objectives and volatility tolerances.
- cremnob 13y ago
  Whenever this comes up I share this quote from Seth Klarman: “Diversification for its own sake is not sensible. This is the index fund mentality: if you can't beat the market, be the market. Advocates of extreme diversification — which I think of as overdiversification — live in fear of company - specific risks; their view is that if no single position is large, losses from unanticipated events cannot be great. My view is that an investor is better off knowing a lot about a few investments than knowing only a little about each of a great many holdings. One's very best ideas are likely to generate higher returns for a given level of risk than one's hundredth or thousandth best idea.”
  - clarky07 13y ago
    While I totally agree, 75% is still pushing it. One might not have a hundred or a thousand good ideas, but 5-10 doesn't seem out of the question. Apple is also my biggest holding, but it is 1 of 10 and only 25%.
  - bickfordb 13y ago
    How are you doing with this strategy?
- rdl 13y ago
  I bought a bunch of out of the money calls (500-600) for jan 14 and jan 15 when Apple was 450, and a bunch more at 400. It has been...exciting.
aprescott 13y ago
I'm not an investor but I've read both of Graham's main books. I don't think value investing in the Graham sense would lead you to a company as big as Apple, and certainly not with the company's stock as 75% of a portfolio!
- cremnob 13y ago
  You alluded to it; my investing philosophy, while highly influenced by Graham, isn't the same as his.
  - aprescott 13y ago
    The difficulty of relying on the same name for separate ideas. :)
pachydermic 13y ago
Dude why the hell would you do that? If you have a family and stuff to look out for, you should definitely diversify your portfolio. It can't possibly be worth the risk! But if you're young and have no family... best of luck, man. But I am an Apple doubter and would invest like that no matter what company you're talking about.
unabridged 13y ago
Can I ask why you believe AAPL is undervalued? I think the exact opposite, at its current market cap you could buy both Google and Amazon. The iphone popularity has already crested and is steadily losing ground to android, itunes is losing ground to other digital stores and streaming media.

by cremnob 13y ago

mark_l_watson 13y ago

Wow, 75% of your portfolio in one stock? I am more of a chicken investor: hugely diversified over the US and International markets.

hkmurakami 13y ago
both approaches are totally fine. just depends on your objectives and volatility tolerances.
cremnob 13y ago
Whenever this comes up I share this quote from Seth Klarman: “Diversification for its own sake is not sensible. This is the index fund mentality: if you can't beat the market, be the market. Advocates of extreme diversification — which I think of as overdiversification — live in fear of company - specific risks; their view is that if no single position is large, losses from unanticipated events cannot be great. My view is that an investor is better off knowing a lot about a few investments than knowing only a little about each of a great many holdings. One's very best ideas are likely to generate higher returns for a given level of risk than one's hundredth or thousandth best idea.”
- clarky07 13y ago
  While I totally agree, 75% is still pushing it. One might not have a hundred or a thousand good ideas, but 5-10 doesn't seem out of the question. Apple is also my biggest holding, but it is 1 of 10 and only 25%.
- bickfordb 13y ago
  How are you doing with this strategy?
rdl 13y ago
I bought a bunch of out of the money calls (500-600) for jan 14 and jan 15 when Apple was 450, and a bunch more at 400. It has been...exciting.

aprescott 13y ago

I'm not an investor but I've read both of Graham's main books. I don't think value investing in the Graham sense would lead you to a company as big as Apple, and certainly not with the company's stock as 75% of a portfolio!

cremnob 13y ago
You alluded to it; my investing philosophy, while highly influenced by Graham, isn't the same as his.
- aprescott 13y ago
  The difficulty of relying on the same name for separate ideas. :)

pachydermic 13y ago

Dude why the hell would you do that? If you have a family and stuff to look out for, you should definitely diversify your portfolio. It can't possibly be worth the risk! But if you're young and have no family... best of luck, man. But I am an Apple doubter and would invest like that no matter what company you're talking about.

unabridged 13y ago

Can I ask why you believe AAPL is undervalued? I think the exact opposite, at its current market cap you could buy both Google and Amazon. The iphone popularity has already crested and is steadily losing ground to android, itunes is losing ground to other digital stores and streaming media.