Wednesday, August 20, 2014

Apple's Stock Price Echos Investment Strategy

As Apple reaches an all time high in its stock price, it reminds me of the adage, buy on the rumor, sell on the news.  On September 9, Apple is expected to announce new versions of its iPhone, possibly new versions of its iPad, and the first launch in a number of years of a new product, the iWatch.  That is three weeks away so till then we can only speculate on what gets announced.  But for those that are fans of Apple and invest in it as a company as well, that potential news will drive the price up into Septemebr 9. 

Post that date, profit takers will no doubt sell on the news of product releases.  Yet that is short run thinking and for those that invest in the long run, the combination of long run growth and dividend return should continue to make Apple a valued investment.  For it is more than just one or two products; Apple has built an ecosystem where its products work easily with one another, iMac to iPad to iPhone to Apple TV to possibly the iWatch. Products that work seamlessly and easily with one another. 

So enjoy the up and down ride of the stock price.  Some investors will chase the short term profit while others will enjoy the long term journey.

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