4 ms·

>> But he noted that by many measures, Apple shares appeared to be a bargain. “The valuation is still inexpensive,” he said. “It’s less than 13 times next year

>> But he noted that by many measures, Apple shares appeared to be a bargain. “The valuation is still inexpensive,” he said. “It’s less than 13 times next year’s earnings and less than 10 times cash flow,” both below the market average. “Those are very low multiples. They have $140 billion in cash on the balance sheet and they’re generating $60 billion in cash a year. All the numbers are just enormous, which is hard for people get their heads around.” So would it be a good idea to load up on AAPL stock ?

harmegido 12y ago
Are you really asking? I wouldn't buy any single stock, let alone a tech stock, with money I'm not prepared to lose.
walru 12y ago
Should you have bought a house at this time in 2008?
capkutay 12y ago
I don't know...I'm a relatively young investor. I started investing in 2009, bought a bunch of apple and google stock. Now I feel like the market is inflated like crazy and I'm afraid to touch anything. Am I being irrational or is it normal to see these types of cycles? Anyways, if you want my unsolicited stock advice, I think Tesla still has a lot of upside. The way I see it, it has a $25b market cap where as a lot of big name car companies are above $60b in market cap (BMW at $60b, Mercedes around $100b, Toyota around $220b). I think Tesla could easily catch up to them because of their potential for growth. So that's a somewhat likely 2x return on tesla stock if you want to look at it that way.
- mahyarm 12y ago
  Until you can make signifcantly more money off the returns of a broad index fund vs. your near future salary, it's not worth the labor to try to beat the most well capitalized and skilled finance firms in the world in the stock market. So if you can make 250k/yr and you get a %5 net return from an index fund, it's not worth it to play stock investor until you have $5mm in the bank. So if you have $300k in the bank, the constant hours of life, labor and anxiety might get you +%5 more return than usual (doubtful) and you've spent a huge amount of hours to make an extra $15k that year. It usually ends up less than minimum wage and you were better off just doing contract programming work on the side. And the reason why the stock market is inflated like crazy is because central governments of the world have been printing money like crazy with QE everywhere, and it has to go somewhere... Just buy an index fund, your going to have a relatively large amount of apple stock indirectly as a result anyway.
arandomafrican 12y ago
Probably not. Because you'll only make money if the stock stops being undervalued. And there's no sign that the reasons it's undervalued will change any time soon.
lurcio 12y ago
Not in anyway financial advice, but maybe a good idea if you do so with position protection. If that makes no sense - then only invest based on your risk appetite.

harmegido 12y ago

Are you really asking? I wouldn't buy any single stock, let alone a tech stock, with money I'm not prepared to lose.

walru 12y ago

Should you have bought a house at this time in 2008?

capkutay 12y ago

I don't know...I'm a relatively young investor. I started investing in 2009, bought a bunch of apple and google stock. Now I feel like the market is inflated like crazy and I'm afraid to touch anything. Am I being irrational or is it normal to see these types of cycles? Anyways, if you want my unsolicited stock advice, I think Tesla still has a lot of upside. The way I see it, it has a $25b market cap where as a lot of big name car companies are above $60b in market cap (BMW at $60b, Mercedes around $100b, Toyota around $220b). I think Tesla could easily catch up to them because of their potential for growth. So that's a somewhat likely 2x return on tesla stock if you want to look at it that way.

mahyarm 12y ago
Until you can make signifcantly more money off the returns of a broad index fund vs. your near future salary, it's not worth the labor to try to beat the most well capitalized and skilled finance firms in the world in the stock market. So if you can make 250k/yr and you get a %5 net return from an index fund, it's not worth it to play stock investor until you have $5mm in the bank. So if you have $300k in the bank, the constant hours of life, labor and anxiety might get you +%5 more return than usual (doubtful) and you've spent a huge amount of hours to make an extra $15k that year. It usually ends up less than minimum wage and you were better off just doing contract programming work on the side. And the reason why the stock market is inflated like crazy is because central governments of the world have been printing money like crazy with QE everywhere, and it has to go somewhere... Just buy an index fund, your going to have a relatively large amount of apple stock indirectly as a result anyway.

arandomafrican 12y ago

Probably not. Because you'll only make money if the stock stops being undervalued. And there's no sign that the reasons it's undervalued will change any time soon.

lurcio 12y ago

Not in anyway financial advice, but maybe a good idea if you do so with position protection. If that makes no sense - then only invest based on your risk appetite.