“Warren Buffett doesn’t own Apple stock, but the data says he should,” Phil Ash reports for TheStreet.Apple gets a 100% Buy rating from our Warren Buffett model and 93% from our Peter Lynch model.”
“The ubiquitous computer and phone manufacturer passes all nine of Buffett’s key financial criteria and qualifies as a ‘Buffett-type company,'” Ash reports. “he competitive barrier created by the strong Apple brand is a key element of Buffett companies.”
“Legendary investor Peter Lynch would categorize Apple as a ‘fast grower’ and measure it primarily by its price-earnings-growth ratio (PEG). Currently sporting a price-to-earnings ratio of 13.4 and an average EPS annual growth rate of 28.9%, Apple’s PEG Ratio is a very healthy 0.46,” Ash reports. “Apple also passes five of Lynch’s seven tests while scoring neutral on the other two.”
Read more in the full article here.
MacDailyNews Take: Buy low. Sell high.
[Thanks to MacDailyNews Reader “Brian” for the heads up.]
Buy low. Sell high. is famous quote by Sum Young Gi, Realestate Guri
Buffet follows a typical PLUM schedule for purchases. I wouldn’t expect him to scoop up AAPL until BUN approaches 15% or more.
And what does Timber Cook have to say about the current situation?
Tim thinks you are a immature freakin’ idiot. Me too by the way.
Shut up phony.
No way pup!
So…
If their indices show 100% and 93% that Buffet and Lynch, respectively, should buy AAPL by their own criteria, why are they not doing so?
Buffett does understand technology. Doesn’t matter how good the stock and the company are. If he doesn’t understand the business he won’t invest.
Bad article for two reasons.
It isn’t good to invoke people just to give an article more weight. The halo effect usually works, though, so some readers have automatically connected Buffett to Apple. I don’t. Sneaky, Phil Ash.
More to the point. Buffett generally did not like technology stocks. He made the frequent point that he did not invest in companies he did not understand. Companies such as Apple require a level of understanding involving cutting edge technologies. That’s why Buffett bought See’s Candies. He understood their product.
Apple can be confusing.
So in other words, in over three decades Warren Buffet didn’t have the intelligence or drive to actually learn something about technology. That’s not the kind of person that I would follow or respect, no matter how much money he has.
He’s pretty old, so I think he’s probably threatened by anything electronic. I doubt he even has a smartphone. His secretary most likely handles all that stuff. There are plenty of older people like him. They like doing things the way they’ve been used to when growing up. Buffett is probably a workaholic and all he thinks about is how to make more money. That’s some heck of a life to live. I figured by now he’d retire and play golf or go on cruises with all the wealth he’s accumulated.
With Buffett not backing Apple, the stock has been given the kiss of death by most investors who believe Warren Buffett is some sort of financial god. I still don’t quite understand why he likes IBM but not Apple. I keep hearing IBM is hanging by a thread. However, IBM stock isn’t doing that much worse than Apple stock is. They both suck big time, so I’m not sure why Buffett would want IBM or Apple as an investment.
The stock market does not indicate the value of the company.
The stock market has been rigged…forever.
Buffett and Lynch (along with other “superstar” investment types, want you to believe that they have a magic potion for the stock market. They’re just con men who haven’t gotten caught yet.
Dr. Money’s advice today is “buy high, stay high”. The marijuana futures market is where it’s at.
To be fair, Warren Buffett has a long enough track record where he has proven above average returns. However, his status in the investing world provides him access to deals and attractive terms that no average investor will ever get, which puts him at a distinct advantage to nearly everyone in the market. The best example of that is Buffets investment in Goldman Sachs during the financial crisis.
Ah, so these guys are just Donald Trump types.
When Buffet speaks people listen.
“The stock market does not indicate the value of the company”. Hahahaha. What looney tunes planet do you live on? Whether you like it or not – yes it does. No matter theoretical value, the value of anything is only what people are prepared top pay for it right now and that is exactly what the sharemarket shows. People on this site can rant all they like against “the rigged stock market”, but there seems to be a broad spread of financial ignorance at play here.
Thumbs Up !
Indeed apple PEG is rediculousely low…
If Warren dont understand and buy Apple then what stiopping Apple to buy Berkshire?
Warren Buffett is the greediest human being on the earth.
Yeah, and you’re a paragon of virtue!