“By not owning shares of Apple, you just might kick yourself 10 years from now (if not sooner),” Alan Saltzman, founder of Regarded Solutions, Inc., writes for Seeking Alpha. “The world’s largest public company with over $150 billion in cash and equivalents, that has paid and increased dividends regularly for 3 consecutive years should be in every portfolio anyone owns, right now.”
“I know it has ‘only’ been 3 consecutive years thus far, but the amount of money and the commitment to give shareholder value all of the time in the form of dividends and share buybacks, has been understated,” Saltzman writes. “I believe that we are on the verge of seeing the birth of a brand new Dividend Aristocrat of the future, and I believe the shares are under valued and ready for greater growth once again.”
“Apple stock is cheap in my opinion, and at the current share price of $99.00, it is more affordable than when it last hit $705, even if it is because of the 7-1 stock split,” Saltzman writes. “Is $125-$150/share within 18 months outrageous, based on this new [Apple+IBM enterprise partnership] business and higher P/E multiples? No, and that might be very conservative.”
Read more in the full article here.
Heh, heh, heh… 😉
There are laws against this type of on-sided opinion and guidance. Tech stocks will always be too volatile for long term investment planning. The pressure to always have something new and exciting always sets back the clocks on tech stock values. Apple is nearing the end of their up cycle. The new products are all based on form factors that they ridiculed not so long ago and they keep selling to the same consumer who will find it old to keep replacing good gadgets. Apple will experience growing pains post larger form factor iPhones.
How long has Microscam been peddling their softshit products now?
All schlock ANALists said Microdog wuz a good long term investment. Eh?
Apple has A superior plan unlike any other tech company on the globe. pff.
If there were laws against “one-sided opinion and guidance,” then nearly all analysts and most of the U.S. population would be in jail.
That is the best thing about being an analyst. All you have to do to make a name for yourself is to have a “system” and publicly make a few correct prognostications. Few people seem to keep track of how many erroneous projections are made. Furthermore, analysts can revise their stance at a moment’s notice and play revisionist historian relative to reality. And they get paid for doing this…
No. You’re wrong.
I bought in at $70 per spilt and the stock is up 933%. There have been a lot of ups and downs since then but it has been a good investment (so far).
Saying that people should really diversify and whenever an analyst recommends an aapl buy I begin to worry. Usually this means the stock has been pumped up and the brokers want to sell their stock to cash in on a high.
Warren Buffet said it best: “if you need to diversify you haven’t done your homework”.
The equity side of my portfolio is 100% AAPL. I learned a long time ago never to bet against myself. My original shares of AAPL were bought for about $1.07 (split adjusted). Had I diversified, every dollar I put into some other stock would have lost out on that 100x growth, as well as the recent dividends. I *AM* retired because of my AAPL investments. The only thing wrong with the article is it’s about 15 years too late.
That’s very cool. Congrats.
Half of my retirement is in aapl. It’s a good ride and I have stuck with it through all the ups and downs.
The rest is in mutual funds. Have no choice if I want to get matching contributions from my employer. But forost of the funds apple is in the top 10 stocks.
I too was stuck with mutual funds on the employer 401k side of my investments for a long time. I put in enough money to get a 1:1 match on their 6% limit, and the rest went into AAPL. Later on, my employer offered a self-managed 401k option for 50% of the 401k portfolio, and I switched to putting 50% of my contributions into AAPL and still got the 6% match. About a year after leaving that employer I cashed out the 401k and moved it all to my private IRA where the rest of my money was. I sold everything in that 401k when AAPL was at around $460 sometime in June of that year, and bought AAPL with those proceeds in my IRA account on July 1st of that year for $402. Now I’m slowly moving that SEP IRA money into a Roth IRA to avoid taxes on future growth.
Many have retired very comfortably and many more will – tune out the noise and stay the course.
Believe it or not, there hasn’t been a lot of institutional buying as of late. Institutional ownership seems to be stuck at around 62%, so although this dude is urging investors for Apple to be in their retirement portfolios, nothing is happening yet. Meanwhile, stocks like Pandora, Intuitive Surgical, Netflix and Priceline are institutional favorites. I wouldn’t think Pandora or Netflix would be stocks people would hold onto for a long time.
Agreed. the split has encouraged retail investors to come back to Apple, and that is what explains AAPL performance since April.
Stocks that pay dividends in retirement portfolios means that the stock has stopped growing and maturity has set in. If you are close to retiring, maybe. If you’re not, it’s a terrible metric to use for ownership.
There is NO WAY Apple can have the kind of run over the next ten years that it had in the last ten. I sold at >$500 almost 6000 shares of AAPL I had purchased at an average of $17. Like Zeke (above) I too am now “retired” on the almost $3m I made on this one stock, with all the money now in good diversified plan that’s producing over $200K a year. This isn’t going to happen again for anyone. Ten years ago if you had predicted the demise of Nokia or RIM, people would have scoffed. I am fortunate to have been smart enough to buy Apple, and smarter still to hold it thru the ups and downs.
looks like this guy was dead on correct.