Why I just doubled my position in Apple

“Apple Inc. is one of Warren Buffett’s favorite stocks and his largest holding,” Brian Soule writes for Seeking Alpha. “Why does Mr. Buffett buy any of the companies that he buys? And to be clear, in his mind he is buying companies not shares of stock, he is buying businesses not ticker symbols. These are his words, from the 2017 annual shareholder letter: ‘In our search for new stand-alone businesses, the key qualities we seek are durable competitive strengths; able and high-grade management; good returns on the net tangible assets required to operate the business; opportunities for internal growth at attractive returns; and, finally, a sensible purchase price.'”

“In an interview with CNBC last year he said: ‘Apple has an extraordinary consumer franchise. I see how strong that ecosystem is, to an extraordinary degree… You are very, very, very locked in, at least psychologically and mentally, to the product you are using. [iPhone] is a very sticky product,'” Soule writes. “Apple devices make up approximately 40% of the U.S. smartphone market, almost as much as the next two nearest competitors. And the U.S. smartphone market is alive and well.”

“Once again heeding the sage advice of Mr. Buffett, we (long term investors) should not focus on quarterly variances in the shipment of the iPhone or any other product Apple sells. If you pointed out that Mr. Buffett ‘lost’ about $4 billion with the most recent drop in AAPL stock he would probable shake his head and laugh. I haven’t seen any comments from him on the most recent AAPL sales slump, but based on his past comments I can only guess he is quietly buying billions and billions of dollars worth of the stock,” Soule writes. “Do you think that AAPL will be a good investment in the next ten years? Twenty? I certainly do. I expect in 6-8 years the value of the shares I bought earlier this month will be worth at least twice what they are now.”

Read more in the full article here.

MacDailyNews Take: Many people have done very well for themselves and their families by following Warren Buffett’s advice.

17 Comments

    1. Most of his points and arguments are sound and valid and good infirmstion…
      But he could have left it at that and not talk about his 20 shares of Apple which make up 4% if his portfolio.. 🤦‍♂️🤦‍♂️

  1. Let me give you another piece of hard earned investment advice, “never try and catch a falling knife”. If Apple drops another 30% from where it is now, you will need to have a gain of 43% before you even get back to breakeven.

    1. Dont worry, we have dividends! After 30 some odd years I’ll make up what I lost the past 8 weeks.

      Got my shareholder voting information in the mail for the upcoming meeting. It is going to feel so damn good voting against Pipeline and his feckless moron team.

      1. Let me paint a picture of your insanity Von Greenspan Tinckler

        1-Tim as a personality is who Tim has been for the last 20 years or so at Apple and the same exact person as CEO for the last 7 years or so …..

        2-Apple is still the same company making the same exact products it made when u purchased at an all time high a few months ago.

        3 -Here you are with a loss after a few months bashing Apple and Tim left and right without end…. nauseatingly so!

        Here is the 1 million dollor question:

        Why did you buy Apple at all time high?
        Were you completely out of your freaking mind buying shares of a company at all time high, when you clearly absolutely hate/hated the management, particularly the ceo.. and hate everything Apple including products and all!? (All According to your more than clear and well documented rants and posts about your attitude re Apple )

        You see Von, before u go out bashing and blaming the universe for your short term loss ( mind , u have not lost anything if u have not sold ).. you should take a long hard look in the miror and ask yourself:

        Why did i buy Apple a few months ago at all time high? When i hate the company so much.
        What was i thinking buying shares if a company, just a few short months ago, when i hate/despise it so much and have zero belief in, both on managemnt end and product end.. (again , as you posts clearly, clearly have indicated you do)

        You are one giant fool, with a giant mouth , who makes bad decisions and plays games he has zero buisness playing.. then gets hurt out of his own ignorance and stupid decisions and goes on basing and blaming the universe and crying mom mom..help … …

        Tim or Apple have done nothing to you!
        But you and your ignorance have and will continue to do so till you open your eyes and face yourself !

        Again ask yourself: why did i buy AAPL at all time high( as u admittedly have), just a few short months ago while i hated it so much and had zero belief in the company?

        Or
        If you did not know better.. why did u even consider buying shares of a company with no good information and without due diligence? …And in full ignorance.
        Apple and their product and management are exactly the same today as they were few months ago !

        1. “1-Tim as a personality is who Tim has been for the last 20 years or so at Apple and the same exact person as CEO for the last 7 years or so …..”

          Exactly! And this is the very reason that Apple has never made any significant progress under his tenure. No forward thinker, not seeing too far ahead, chasing and blinded by the immediate profit with a calculator in hand. Never changing bean counter, and not understanding the technical aspects.

          2-Apple is still the same company making the same exact products it made when u purchased at an all time high a few months ago.

          See above

          1. Keep it in context;)
            We are talking couple months … lol

            Plus I Love my Apple Watch ( more than any other Apple product, and i own every category of product Apple puts out there (Close second the new iPad pro 12.9 with pencil ), Apple Pay, Airpods, Homepod, Apple pencil,..Apple Music. Face id…..homekit initative, health initiative ..Love them all.
            Plus All the iterations and shear power of Apple silicon.
            On top the new imac pros… etc…
            That is not too shabby for 7 years or so, plus dealing with Steves passing chaos and building and moving to the new campus and increasing Apples output and revenue 5 fold+ All At the same time!

            A little scope never hurts.

            1. Kempty KenT, the Barbie-doll boyfriend whose name has a silent e that’s pronounced like you would expect it to, is the master of MDN with his pithy comments and brainiac sized gonads.

              Go Kempty KenT! You’re no Clark.

          2. “And this is the very reason that Apple has never made any significant progress under his tenure.”

            Oh, PUKE! Do you actually believe this crap? Apple has grown ENORMOUSLY with Tim as CEO… and has produced many excellent (and evolving) products.

            1. @the married couple: Sean and Jimbo

              You guys are despicable separately, but as a tag team you two are simply nauseating.

              Don’t you have anything better to do than cheerleading for Tim Cook? I’m sure Mr.Cook can afford better looking cheerleaders. You guys look awful in mini skirts.

    2. That is a very vague and one dimensional advice.

      1- Impossible to know where the bottom is or where the inflection point is.. hence what you call a falling knife.. it may very well be a rocket ready to take off in next few months as well. In which case, i guess your advice would be .. ‘dont chase a stock ‘!?

      Mind u Apple pe is 12.. and forward pe 9… 🤣….while it still is one of the most profitable companies in the world.
      Still Makes more profit in 2 quarters, than Amazon has in its entire existence!.

      2- There is this thing called cost averaging down If u happened to buy at high.. and still are a believer in the company .
      If u are not a beliver.. U should not even own a single share.

      3 – be in it for the long haul ( long haul is not a quarter or a year .. its yearS).. and remember u are earning dividends and u can reinvest or whatever. Also remember this ridiculously discounted prices (aprox 30%) is gods gift for Apple’s buyback program ….allowing them to buy back and retire 30% more shares than they would have otherwise.
      That in Turn will boost EPS way more which directly effects share prices for Shareholders in the long run !

      4- What is you ‘if’ of another 30% drop based on ? Which means Apple will have lost aprox 50% of its value in 3 months over 7% correction for one quarters revinue.
      (Ps. While you are at spreading fear .. why not another 50% or 70%..drop from here)
      Are u short Apple ? 😉

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