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The Motley Fool’s Beyers: You’re crazy if you’re selling Apple stock – I’m buying

Tuesday, October 7, 2008 · 5:20 pm · 37 Comments

“Come Oct. 17, I will purchase shares of Apple (AAPL),” Tim Beyers writes for The Motley Fool.

“Why not sooner, or today, when a global sell-off has the iEmpire trading down by more than 4%? The Motley Fool’s disclosure policy requires that I wait 10 days to buy stock in a company I’ve written about,” Beyers writes.

“And yet the delay doesn’t bother me… I expect the irrational selling to continue for weeks, perhaps months,” Beyers writes.

“High growers deserve high multiples,” Beyers writes. “Apple isn’t getting one now, but I’m betting a portion of my retirement savings that, over the long haul, it will.”

Full article here.

[Thanks to MacDailyNews Reader "Judge Bork" for the heads up.]

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Comment Feed

37 Comments

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Macintosh

Tuesday, October 7, 2008 - 5:24 pm · Reply

Well, what do ya know… Me too!
Jersey_Trader

Tuesday, October 7, 2008 - 5:39 pm · Reply

All ready did. As of yesterday, I have lost 49% of the portfolio. So, today, I lost 53% from last years high that was mainly made owning Apple’s stock.

I may take some off the table over the next few days. But, in the end, I will make it back. Wish I had not kept it as it dropped, but I know it will be back up again.
Rob

Tuesday, October 7, 2008 - 5:40 pm · Reply

Actually, he’s smart to mention it now. There’s always a dip in share price after an Apple event, and if the October 14th rumor is true, the stock will dip until the 18th or so.
Cascadians

Tuesday, October 7, 2008 - 5:47 pm · Reply

I think we may be entering the Mother Of All Depressions but I am planning to soon buy a tiny bit of Apple stock. They say stock should be viewed as gambling and only play money you wouldn’t miss should be invested.

Apple makes awesome products which are a sheer exhilarating joy to use. It does not even matter that the crooksters are manipulating the market blatantly — eventually Apple’s ultra-worthy products will be King. Apple’s goodness will outlast the corruption now teetering on the brink of the abyss.
Macintosh

Tuesday, October 7, 2008 - 5:48 pm · Reply

@Rob,

I think he’s more concerned about Apple’s financial results on October 21.
Alec

Tuesday, October 7, 2008 - 5:52 pm · Reply

I sold my Apple stock 9 months ago. In fact, I sold all of my stock 9 months ago. My broker at Smith Barney looked at me like I had 2 heads. I explained to him that the banking situation was for more disastrous than it was being touted and that I thought even healthy profitable companies would get drug down in the muck by it. He tried to get me to stay in. Glad I didn’t listen. 15 years in banking paid off for me.
Crazylegs

Tuesday, October 7, 2008 - 5:53 pm · Reply

Forget about fundamentals. No one will buy this stock ahead of a consumer driven slow down. Too many sellers out there that don’t care about fundamentals to sit here and make an intelligent investment decision. If you are an “investor” I believe it’s a very smart bet to buy anywhere in the 80s, 70s, 60s. Just keep scaling in and 2 to 3 years following your last purchase, you’ll be happy. Remember that Apple has $21/share in cash, so you are only paying $68 for cash flow. They have already put up $6/share cash flow in the first 3 quarters of this year and who knows but I bet they put up another $1/share cash flow. So you are paying less than 10x true earnings for the year that ALREADY ended. If the company doesn’t shrink or grow, this is still cheap, cheap, cheap.
Crazylegs

Tuesday, October 7, 2008 - 5:56 pm · Reply

But it doesn’t matter if hedge funds are liquidating because of redemptions and high water marks and the Joe Public is panicking and selling their mutual funds.
Jamie

Tuesday, October 7, 2008 - 6:12 pm · Reply

how much is in Apple’s warchest? Does anyone have a figure?

I’m glad they have that, I think they are pretty safe for now. Plus, how many people are gonna do overtime and sell kidneys on eBay to get the next amazing new product from Apple. That dude from Apple said they have new amazing products coming out this year, there’s still nearly 3 months left in 2008, new MacBooks for the school year etc etc.

They were also wise keeping that cash mountain and not blowing it on buying up Sony and Adobe.

My $0.02
jarrettdailynews

Tuesday, October 7, 2008 - 6:13 pm · Reply

Just had my sister sell her mutual funds today, yeppers, joined the panic we did….. good news is, now we are closer to a bottom than we were at 14,000…. ha ha hahahahahah
Macromancer

Tuesday, October 7, 2008 - 6:14 pm · Reply

i feel like this thing is going to run under 80 and I’ll be ready to pounce. In the meantime I’m putting all my money in a safe.
Randian

Tuesday, October 7, 2008 - 6:21 pm · Reply

@Cascadians

“I think we may be entering the Mother Of All Depressions. . . .” If you truly believe what you have written here, you are an absolutely idiot to invest one more nickel in “paper.” Better that you buy seed, toilet paper, and ammunition. Or are you just emoting?
bobchr

Tuesday, October 7, 2008 - 6:29 pm · Reply

@ Jamie, I think it’s up to $20 Billion.
Cascadians

Tuesday, October 7, 2008 - 6:39 pm · Reply

I’ve never bought any stocks. I just believe in Apple and my life seems to go against trends, LOL Been a prepper since 1998 when Y2K changed my mindset. So even though I do believe it’s insane, I will buy the smallest amount of Apple stock possible soon simply because I believe in Apple’s worthiness.
penk

Tuesday, October 7, 2008 - 6:51 pm · Reply

Yeah, I bought a few more shares late last week, just above the $100 mark (brought down my average purchase price a little)

The Fools idea of the 14th makes perfect sense – there is a big announcement “Scheduled” for that day, and no matter how great it is the stock will drop…

The next purchase point will come at the earnings announcements.
Raymond in DC

Tuesday, October 7, 2008 - 7:15 pm · Reply

Alec writes, “I sold my Apple stock 9 months ago. In fact, I sold all of my stock 9 months ago. My broker at Smith Barney looked at me like I had 2 heads.”

When I met with my own broker a few months ago, I told him I’d been slowly thinning my holdings out of concern with how things were going. He started making faces. “What kind of strategy is that?”, he asked. Unfortunately, I didn’t have the advantage of 15 years in the banking business, so I still entered this meltdown with (for me) substantial holdings which, sadly, are no longer so substantial.

I, too, am looking to pick up more AAPL once I sense we’re nearing the floor. But it’s scary to realize the market is near where it was immediately after the 9/11 attacks.
KingMel

Tuesday, October 7, 2008 - 7:16 pm · Reply

@Jamie
“They were also wise keeping that cash mountain and not blowing it on buying up Sony and Adobe.”

I agree that they would have paid too much at the time, and I was not in favor of it. But with the recent stock declines, Apple’s deep cash pockets could translate into major buying opportunities (not limited to Sony or Adobe). That is a great position to be in.
Algernon Blue

Tuesday, October 7, 2008 - 7:16 pm · Reply

Ya gotta have cash (or credit but nobody can find that now) to run a business. It takes cash to enter new markets or invest in lowering your costs. Maybe this would be a good time for Apple to buy back some stock.

Anyway you look at it, forget the products, that amazing balance sheet may be their best strategic advantage for the next couple of years.
RWS

Tuesday, October 7, 2008 - 7:32 pm · Reply

INSANE. The market is tanking and you want to buy? Moron. Growth stocks often correct 70% or more from their peeks once they roll over. That dog, AAPL, hasn’t been above it’s 200 DMA since early September. Hey, I love the company and the products too but don’t be a sucker. Buy on strength. Remember, a few months ago when all the market wizards were tellings us to buy financials???

Think about it. Things will get better eventually.
@Randian

Tuesday, October 7, 2008 - 7:33 pm · Reply

If you truly believe what you have written here, you are an absolutely idiot to invest one more nickel in “paper.” Better that you buy seed, toilet paper, and ammunition.

If you truly believe what YOU have written, buy your limit’s worth of AAPL on margin.

Or are you just emoting?
clunker

Tuesday, October 7, 2008 - 7:38 pm · Reply

I think we may be entering the Mother Of All Depressions

(They) make() awesome products which are a sheer exhilarating joy to use.

(Their) ultra-worthy products will be King. (Their) goodness will outlast the corruption now teetering on the brink of the abyss

Are we talking 2000′s Apple or 1930′s Duesenberg?
YES

Tuesday, October 7, 2008 - 7:40 pm · Reply

I need more money to buy MORE before this sale is off!
@RWS

Tuesday, October 7, 2008 - 7:41 pm · Reply

Remember, a few months ago when all the market wizards were tellings us to buy financials

Do the exact opposite of whatever the experts and headlines say to do.
@clunker

Tuesday, October 7, 2008 - 8:14 pm · Reply

Ya’ know what a ’30s Duesenberg is worth today!
Macintosh

Tuesday, October 7, 2008 - 9:01 pm · Reply

Here’s a classic for you:

“When others are fearful be greedy and when others are greedy be fearful.” – Warren Buffet