Apple stock being used for Apple purchases

Can I effectively get Apple to buy my iPad for me in a few months by buying $10,000 in Apple stock, adjusting for taxes?

Matt Krantz reports for USA Today, “Seems like there’s nothing Apple’s (AAPL) stock can’t do. Given the parabolic rise of shares of Apple, it’s become the can-do-no-wrong company with the can-do-no-wrong stock.”

“And when a stock does no wrong — only goes in one direction (up) and rarely has bad news — as Apple’s has, questions like yours come up,” Krantz reports. “And you know what? While your question might sound outlandish, it’s not only true, but actually understated. It turns out that had you bought Apple stock at the end of 2011, you could have bought six iPads by mid-March.”

Krantz reports, “With most stocks, what you’re asking about would be highly ill advised: Buying shares of a company with the hope of turning around and flipping them to buy a $500 product in a few months. But several readers have said that’s exactly what they’re doing. They buy Apple stock, watch it reliably soar and then sell shares to buy Apple gadgets.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “ChiMac” for the heads up.]

17 Comments

  1. Oh, noooooooooo, that’s too risky. AAPL is a risky stock. It’s due for a selloff. It’s way too expensive. You’re far better off putting your money in a savings account. AAPL is just a fad that will soon wear off. Save your money and buy a professional computer, like a RIM Playbook.

    That’s your daily finance tip from The Trusty Investing and Finance Guy! Have a great day!

  2. I have continuously heard about the Apple sell-off predictions when AAPL was trading at 10, 30, 100, 300, and now 600? When will it happen? Doesn’t it seem that the only company that has strong growth, margin and profits is AAPL?

    1. When a friend’s AAPL shares doubled, his broker convinced him that the only smart thing to do was sell. The sad part? It had gone from about $20 to about $40.

      The other sad part? The broker knew nothing about Apple’s revenues, Apple’s products or Apple’s prospects.

      1. any smart investor, plays the dips and sells on the big runs. if they really believe in the company, they’ll still make money and cash out on the way up.

        only down side in playing a $600 stock is that you need a lot more money to play it meaningfully and % movements are less.

        AAPL is not expensive contrary to beliefs, it’s just not as easily manipulated now to create dips and gains. $600 invested in AAPL is still $600 invested in AAPL. It can be one share or 6.

      2. Typical. Broker needed some commissions that day. When I was at ML, there was a printout of the daily and month to date commissions just outside the bosses office for the boss and everyone else to see. I seldom recommended a client with winning positions to sell. Guess that is why I “left” many years ago.

    2. u r right. Now it has also surpassed GOOG. Compare both share price. AAPL is higher then GOOG.

      GOOD news. Who says it will be sell off. There might be profit taking but $52 to $58 earning per share this year and $80 to $90 for next year means by XMAS it will be over $1,100.

    1. … in that you can earn a whole lot and not pay a penny in taxes simply by not selling! My wife’s money was used to buy AAPL in December – under $400 – and is now worth over half again what she paid for it. A hundred shares’ (pre-tax) profit would buy a nice(?) small car! I don’t expect to sell until either an unreasonable drop (to buy in again nearer the “bottom”) or we need the money for something else.
      We pay every cent in taxes that we owe, but why generate extra taxes to be paid? We may not be anywhere near the top 10% – forget the top 1% – but we live quite well by not paying people for doing nothing but taking our money.

      1. While I agree that there is no reason to incur taxes unnecessarily, I fail to understand your statement about “not paying people for doing nothing but taking our money.” For instance, some of the people being payed with your tax money are the first responders – law enforcement, fire department, paramedics – that were so highly lauded as heroes for their efforts on 9/11/2001. Some of the other people being paid with your tax dollars are the military personnel who have fought so long and hard in Afghanistan and Iraq. Beyond those fine people are many public employees at the local, state, and federal levels who also work hard in an attempt to fulfill the obligations and expectations imposed upon them by U.S. law and the American public.

        Why are many Americans willing to callously identify their public workers as worthless and a waste of money? And why do many of those same people who profess fervent patriotism and love of this country express loathing of taxes, as if they are the scourge of the Earth? Those taxes are necessary to support our country and perform the services that our elected officials – the ones that YOU, the public elected – enacted as law. Our primary failing isnnotnthat our taxes are too high, but that we have failed as a country to levy taxes commensurate with the expenditures that these programs cost over the long term. As a result of tax cut and spend policies in combination with two wars and a major economic collapse, our country is heading towards insolvency. Reviling taxes, regulations, and public employees will not fix the fundamental, underlying flaws in our political system. Instead, we need rational debate combined with a political will to make the difficult decisions and a public willingness across all socioeconomic strata of our society to make the sacrifices required for a gradually recovery to balance and sanity.

        Given the dismal political rhetoric over the past decade or so, as well as the public sentiment so casually spouted by “Good Point…,” I am not all that optimistic that this country will be able to avoid a massive collapse before starting on the path to recovery.

  3. Just remember the tax man/woman.

    I sold some of my Apple stock at $402 last year that I had bought back pre-split when Apple was way cheap. As a single man with no mortgage or other write offs the taxes are not a pretty sight.

  4. Mike Krantz can’t write very well if he tries to illustrate Apple’s stock price rise as “parabolic.” A parabolic curve is bilaterally symmetrical and is also not restricted to forming around the Y axis. Fruitcake writers…

  5. TRUE STORY: I purchased, on margin, 750 shares on 12/7 and another 250 on 12/27 with the hopes of chopping a $20-$30 gain and buy a new car for wife ….

    I already had a nice position in Apple and I sold two other holdings, at a loss (tax time), to make the purchase and got the rest of the monies on margin ….

    So I was leveraged out and all-in on one stock – Something my broker and my retirement guy at work BOTH ADVISED STRONGLY AGAINST – THEY BOTH THOUGHT I WAS CRAZY ………

    But I am a gambler and figured worse could happen was I would hit my 10% loss stop and be out a chunk of change but losses are not new to me, so I was willing to take the risk ….

    By the time the Auto Show came to Chicago I was up some $60K but the very day we went to the Auto Show, Apple stock dropped some some $20 and I lost about $30K that day in total – I was doing OK and thought, should I sell …..

    Wife found new car and said it may be last we would be buying as we are 60 years old and keep our cars 10-15 years and I countered with – NO we will lease for three years …. So we did – So no cash out of Apple – OK lets see what happens ….

    Well that was some $215 a share ago …. Today I am up some very serious coin – Yea, I owe a ton on margin but I have almost a 1/4 mil gain – I just cannot believe my eyes …..

    Thanks Apple … RIP Mr. Jobs, we will miss you!

  6. A grain of salt.

    While most likely possible to do, remember the lesson of 2009. Everything that goes up must eventually come down. The question is: when. The answer is: when you least expect it.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.