With Apple's stunningly strong earnings report, higher guidance and off the charts opening sales for the new X phone in place, the company rose smartly last week, peaking at a valuation never seen or heard before - 900 billion dollars! Just under 10% more and this will be the first company ever valued at over 1 trillion dollars. It has been a great ride for Apple, its shareholders and employees.
For 2017 the stock is up a whopping 50%. To put that into perspective, at the end of 2016 Apple was valued at 600 billion, and has added 300 billion in value! This is more value than the majority of SPX 500 stocks combined. This is just outstanding performance and execution from the company, and there is likely more to come. Hindsight is 20/20 or course, but could you have seen this coming?
Many Apple investors have ridden to extensive wealth on this stock for a long time, preferring to listen to Jim Cramer's mantra of 'just own Apple, don't trade it'. Indeed, that advice has paid off handsomely over the years, where if you had bought it at the depths of the 2009 financial crisis you would have been up some 1600%. Modest by some standards, but far ahead of any index product - I'll take it!
Warren Buffet jumped on board the stock in 2016, fattening up his Berkshire Hathaway stock with a very large stake in Apple. While he may have been late to the party (his first investment ever in the hardware maker), it appears once again 'the Oracle of Omaha's' timing was exquisite. He got on board during the last big selloff in mid 2016, and regardless of who recommended the name (some say it was his second in command Ted Combs, but who cares) Mr Buffet is sporting a massive winner. Hands down, the best there is and ever will be.
Yet, some out there have been skeptical and doubters for a long time. The result of this poor judgment is egg on their faces, painful opportunity cost and the loss of time. As investors, who really has the time to reflect on bad investment decisions over and over again? I know many who fit this bill, some writers on realmoneypro.com
still continue to believe the best of Apple's days are behind them. I laugh at this notion, as I will let the price action and technicals speak for themselves.
At Explosiveoptions.net, Apple has been our BEST option trade in 2017, we have been on board nine separate times (including now with Jan 170 calls, up some 20% currently) and have banked winners on seven occasions, several for triple digit gains. Apple has indeed helped to carry our portfolio to great heights in 2017.
It's not easy to find great investment chances, and regardless of your analysis techniques this stock has been pointing higher for a long time, all you needed was to get on board. In my view, that position has not changed, regardless of the hype over valuation. I'm hearing the new iPhone X is a gamechanger for the consumer, and this is not only coming from Apple's marketing team. If true, then another leg up for Apple!