Yes, Apple shares can double from here

“For many investors, Apple is the single best investment they have ever made. There is nothing a company can do to inspire more loyalty among shareholders, than to make them rich and Apple has made its shareholders a lot of money,” Ken Kam writes for Forbes. “Nevertheless, no matter how much you’ve made on Apple in the past, you have to ask yourself whether you would invest in Apple now at its current price. Here’s what Raymond Meyer, a top Marketocracy manager, has to say.”

“Raymond started his Marketocracy track record in September of 2000. Since then his flagship fund, BMSF, is up 189% handily beating the SP500 which was up 85% over the same period,” Kam writes. “Over the last 10 years, Raymond would rank in the top quartile of all Morningstar mutual fund managers. Perhaps most importantly, Apple is the most profitable position in his portfolio, having generated nearly $1 million of gains.”

Ken: Apple is already the most highly valued company on the planet. Do you really think it can double from here?

Raymond: Apple will continue to grow, in spite of the “Law of Big Numbers.” Simply because Apple is the largest company in the world, many say that its growth will slow or stop. I believe this is not true, for four reasons.

Read on here.

[Thanks to MacDailyNews Reader “The Subversive Archaeologist” for the heads up.]

21 Comments

  1. Rather unlikely. No matter what Apple does Wall Street would never give it proper value. They’ll continue to give Apple whatever lower value they want. Even now, they keep saying Apple doesn’t have much growth left. They said that five years ago and look at where Apple is today. As long as Apple’s P/E remains below Microsoft’s P/E, I’d say Apple isn’t being fairly valued.

    1. Please realize, it is people like you who give a stock value. If many people want to buy a stock and few want to sell it, the price goes up. If few people want to buy a stock, and more want to sell a stock, the price goes down.

      If you believe in AAPL, buy now and keep buying it. Convince your friends to buy it too.

      Nobody is going to buy a stock for $200 when the sale price is $106. Get real and learn something about a market economy.

    2. Uh, wrong. In the short term, a stock’s valuation can be influenced by hype, sentiment and punditocracy. But in the long term, earnings growth and cash generation drive the stock’s valuation. As long as Apple continues to fundamentally stay on track, generate cash and earnings growth, I am very confident that the company can at least double the value of its shares.

      Mind you, this won’t happen tomorrow. I would tell any investor to take off their short-term, I-gotta-have-it-now glasses and walk away from this site, CNBC and any other form of noise making about investments. In fact, no less than Warren Buffett would advise the same thing.

      Let the Apple tree grow. You might not hear it grow if you put your ear to it. But several years from now, if you stop and take notice, that Apple tree will be much taller and thicker. There might be some years when it doesn’t rain as much, and the tree will grow at a varying pace. But grow it will.

      Oh, and if you own shares of Apple, be sure to reinvest your dividends. Your tree will grow much faster.

      You’re welcome.

    3. You say unlikely but you don’t give a time frame. Unlikely this year yes, but maybe possible four or five years out. Even at the same P/E if Apple keeps growing at roughly 15% it will reach $200 in five years or so. Lower the growth rate a little and raise the P/E a little and get the same answer.

      I’m not saying it will happen, just that it is not out of the realm of possibility.

  2. You had me at “For many investors, Apple is the single best investment they have ever made.”

    So true so true. And it all started with the purchase of my first Mac – a PowerMac G5 Dual 1.8 GHz machine back in 2004.

  3. Wondering, what is a particularly reasons behind the sentiment for analysts and social-media are picking on Apple none-stop despite how great Apple doing, but why not the other companies?.

  4. It amazes me that AAPL still can’t hang on to gains. After getting beat up for a month its still down today in an up market.And this is with huge buybacks happening. Its absurd. This stock will never get any respect. Wall Street will always treat this company like it could fall apart any moment. The lesson here is that no matter how well they do when AAPL runs up you can sell and not have to worry about it.

      1. We’re all aware very well that AAPL is the most manipulated stock. Selling AAPL is falling to the trap of big boys who wanted to shake off a weak hands two or three weeks before going to earnings. I am confident, Apple will beat the top and bottom numbers plus announce the buyback at the next earning reports. Long AAPL.

        1. I tried to say that, but didn’t want to enrage the punditbots and fundtards. Simply put, they can only keep it down with bullshit for a few weeks at a time, then big investors gradually come back and with them back in the price goes back up. I’ve been watching the cycle for 16 years, and it’s been making me richer the whole time.

      1. Apple is an absolutely crappy stock for traders, for just the reason you stated. if you’re hoping for short term gains, Apple is not the stock to play. If you’re looking for long term gains, buy AAPL and just let it set. It’s very difficult to overcome the emotion of the market, but that’s what you have to do to make money with AAPL.

  5. I’ve held AAPL for 16 years. Over that time I’ve bought and sold a few shares here and there with market fluctuations, but at no time have I ever gotten out of Apple or significantly reduced my holdings. It’s been making me money the whole time.

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