I bought in at $80 right after the big market crash in 2008... I was feeling pretty smug until I read about you guys... $14? $4??? Wow.
Your move required more nerve than my investment did, considering the state of the markets and the forecasts for the economy at the time. When I bought in, I figured the downside risk was fairly small, given that Apple was considered to be a potential takeover target and otherwise the economy was in decent shape.
Not that the broker who made the trade for me didn't think I was sort of nuts. Of course now he thinks I'm some kind of investment genius, which I happily deny. The really funny part is, all these years I've been asking him if he bought some AAPL for his portfolio. He always answers the same way: "I wish I had."
Quote:
Originally Posted by digitalclips
Well done there. I did it in 2000. I would love to see a massive tax bill one day too
If you're going to have a problem, then this is a good one to have.
Why don't you just sell this year, stay out a month, then buy back in?
The capital gains tax rate is at an all-time low (thank you Dubya), and will go up next year. Just a thought.
You mean, try to become a market timer? No way. Even the pros can't pull that off with any consistency. I'm not really concerned about the capital gains rate -- it's not a good basis for making investment decisions anyway. I will probably sell some of my AAPL this year but for no other reason than my portfolio is laughably out of balance, and I am considering other investments such as real estate.
You mean, try to become a market timer? No way. Even the pros can't pull that off with any consistency. I'm not really concerned about the capital gains rate -- it's not a good basis for making investment decisions anyway. I will probably sell some of my AAPL this year but for no other reason than my portfolio is laughably out of balance, and I am considering other investments such as real estate.
No, not implying to try become a market timer. If the capital gains tax rate isn't going to be a benefit, then forget it. As you mentioned, diversifying your portfolio is a reasonable justification to sell though.
No, not implying to try become a market timer. If the capital gains tax rate isn't going to be a benefit, then forget it. As you mentioned, diversifying your portfolio is a reasonable justification to sell though.
It has been one fine ride, for sure.
It's been a crazy ride too. I also remember the bottom falling out twice, all too well.
The variables will be how quickly they ramp it up and how much utilization they get. All that expected iAd, iBooks and iTunes video activity will have to be handled somewhere.
But it also allows smaller investors an opportunity to buy in.
Correct.
It doesn't affect the institutional investor (they hold over 70% of AAPL shares). 4 shares of $60 stock = 1 share of $240 stock.
However, there is a psychological effect on some retail investors (the Aunt Millie types). They perceive the less expensive shares to be more affordable. It's not logical, but human beings are emotional creatures.
If the construction of the data center is going to impact share price, it will be if anything on the downside, since this will show on the balance sheet as an expense. Any revenues derived from this investment are probably years off.
Hmmm..... that would give the company a ~$410B market cap. Making it the most valuable company in the US. (Only two companies exceed Apple's market value at the moment: Exxon-Mobil with ~$325B and MSFT with ~$270B).
It doesn't affect the institutional investor (they hold over 70% of AAPL shares). 4 shares of $60 stock = 1 share of $240 stock.
However, there is a psychological effect on some retail investors (the Aunt Millie types). They perceive the less expensive shares to be more affordable. It's not logical, but human beings are emotional creatures.
This conclusion is incorrect, even by your own reasoning. The impact of "Aunt Millie" investors on the share price is substantially close to nil because "Aunt Millie" investors are an extremely small segment of the overall market. Anyone who believes that they getting more for their money buying twice the number of shares at half the price does not even qualify as an amateur investor, they are a witless investor.
Splits made sense when trading "odd lots" of shares (lots less than 100 or multiples of 100) was more costly. With the advent of electronic trading, this distinction has vanished, and so has the importance of stock splits. Even marginally informed investors know that they are meaningless.
If the construction of the data center is going to impact share price, it will be if anything on the downside, since this will show on the balance sheet as an expense. Any revenues derived from this investment are probably years off.
On the cash flow statement as investment versus revenues. On the balance sheet as an asset - cash is being exchanged for physical plant. What I think you're driving at is ROI - whether the data center's return on investment exceeds Apple's hurdle rate or return for its investments in general - whether in plant, new products or seeking return on its cash. Given that the U.S. debt levels may create severe adverse currency shifts in the years ahead, it would be prudent to park a considerable amount of Apple's cash overseas.
On the income statement as investment expense versus current revenues. On the balance sheet as an asset - cash is being exchanged for physical plant.
Sure, but that goes into book value, and investors hardly care about book value. Investors care about revenues and EPS growth. I'm not saying that building the data center is not a good investment for Apple, but that investors aren't going to get excited when they "find out" about it (if only because this has been known for something close to a year now). What will excite investors is Apple showing that whatever the data center does is something that drives profits. We don't even know what the data center is for yet.
I also bought 1000 shares back in 2004 when the stock price was $28. AAPL has split 2for1 since them making my effective cost $14 each. You do the Math!
I bought 400 shares back in about '97. With spits I had 1600 shares. Idiot financial advisor talked me into selling a bulk of my position since it grew to over 30 or 40% of my IRA - moron that I am I sold much of my stock
Since then I've bought back in @ about 78, 79, 80, 120, 140 and 170. It will be a much tougher sell by a financial analyst to get me to sell my AAPL next time. idiots
I placed what seemed like a fairly modest bet on AAPL in 1997. I still hold those shares (having bought and sold others since). My cost basis on the original purchase is under $4.00 a share. Some day I am going to owe the Tax Man a ton.
How did that work? When you buy and sell stock it's a first-in, first-out calculation. So if you have been buying and selling AAPL after your original investment, you were actually selling the stock you originally bought at $4, not "newer" stock at a higher cost basis... unless I misunderstand your comment.
At any rate, $4 was an amazing time to get in... congratulations!
I bought 400 shares back in about '97. With spits I had 1600 shares. Idiot financial advisor talked me into selling a bulk of my position since it grew to over 30 or 40% of my IRA - moron that I am I sold much of my stock
Since then I've bought back in @ about 78, 79, 80, 120, 140 and 170. It will be a much tougher sell by a financial analyst to get me to sell my AAPL next time. idiots
I've long since learned not to trust the advice of a financial advisor or stock broker. There is ultimately one person responsible for the success or failure of your investments, and it ain't them.
Comments
Just wait until they announce plans for the new data center they are building in N.C. Then see what the stock will do!
What is the latest skinny on its use? Cloud technology, Google maps replacement?
Some day I am going to owe the Tax Man a ton.
Why don't you just sell this year, stay out a month, then buy back in?
The capital gains tax rate is at an all-time low (thank you Dubya), and will go up next year. Just a thought.
I bought in at $80 right after the big market crash in 2008... I was feeling pretty smug until I read about you guys... $14? $4??? Wow.
Your move required more nerve than my investment did, considering the state of the markets and the forecasts for the economy at the time. When I bought in, I figured the downside risk was fairly small, given that Apple was considered to be a potential takeover target and otherwise the economy was in decent shape.
Not that the broker who made the trade for me didn't think I was sort of nuts. Of course now he thinks I'm some kind of investment genius, which I happily deny. The really funny part is, all these years I've been asking him if he bought some AAPL for his portfolio. He always answers the same way: "I wish I had."
Well done there. I did it in 2000. I would love to see a massive tax bill one day too
If you're going to have a problem, then this is a good one to have.
Just wait until they announce plans for the new data center they are building in N.C. Then see what the stock will do!
What is the latest skinny on its use? Cloud technology, Google maps replacement?
No one knows. Apple doesn't disclose such details about its operations nor facilities. We may never really know.
Apple does not gain any competitive advantage by disclosing such matters (actually, it could be seen as a detriment and/or security risk).
The only time Apple really talks about facilities is when they are talking about a retail store.
Why don't you just sell this year, stay out a month, then buy back in?
The capital gains tax rate is at an all-time low (thank you Dubya), and will go up next year. Just a thought.
You mean, try to become a market timer? No way. Even the pros can't pull that off with any consistency. I'm not really concerned about the capital gains rate -- it's not a good basis for making investment decisions anyway. I will probably sell some of my AAPL this year but for no other reason than my portfolio is laughably out of balance, and I am considering other investments such as real estate.
You mean, try to become a market timer? No way. Even the pros can't pull that off with any consistency. I'm not really concerned about the capital gains rate -- it's not a good basis for making investment decisions anyway. I will probably sell some of my AAPL this year but for no other reason than my portfolio is laughably out of balance, and I am considering other investments such as real estate.
No, not implying to try become a market timer. If the capital gains tax rate isn't going to be a benefit, then forget it. As you mentioned, diversifying your portfolio is a reasonable justification to sell though.
It has been one fine ride, for sure.
A split is not a dilution. In fact, it's nothing but a meaningless numbers game.
On face value, yes.
But it also allows smaller investors an opportunity to buy in.
No, not implying to try become a market timer. If the capital gains tax rate isn't going to be a benefit, then forget it. As you mentioned, diversifying your portfolio is a reasonable justification to sell though.
It has been one fine ride, for sure.
It's been a crazy ride too. I also remember the bottom falling out twice, all too well.
Just wait until they announce plans for the new data center they are building in N.C. Then see what the stock will do!
It's under construction, so that already may be factored into the current price at least to some extent. See this link:
http://www.youtube.com/watch?v=hDXSSi1qStA
The variables will be how quickly they ramp it up and how much utilization they get. All that expected iAd, iBooks and iTunes video activity will have to be handled somewhere.
On face value, yes.
But it also allows smaller investors an opportunity to buy in.
Correct.
It doesn't affect the institutional investor (they hold over 70% of AAPL shares). 4 shares of $60 stock = 1 share of $240 stock.
However, there is a psychological effect on some retail investors (the Aunt Millie types). They perceive the less expensive shares to be more affordable. It's not logical, but human beings are emotional creatures.
I told my dad to buy Apple stock when the first ipods came out lol. I always remind him of that.
Anyone here buy in at that point? I bet you're fat and happy now
2005, but I've been off and on 3 times....simply amazing. Apple has become so popular, I almost feel like a windows user.
I think Apple will hit 450 some day.
iLogic
Hmmm..... that would give the company a ~$410B market cap. Making it the most valuable company in the US. (Only two companies exceed Apple's market value at the moment: Exxon-Mobil with ~$325B and MSFT with ~$270B).
Maybe I'll start to worry then.....
Correct.
It doesn't affect the institutional investor (they hold over 70% of AAPL shares). 4 shares of $60 stock = 1 share of $240 stock.
However, there is a psychological effect on some retail investors (the Aunt Millie types). They perceive the less expensive shares to be more affordable. It's not logical, but human beings are emotional creatures.
This conclusion is incorrect, even by your own reasoning. The impact of "Aunt Millie" investors on the share price is substantially close to nil because "Aunt Millie" investors are an extremely small segment of the overall market. Anyone who believes that they getting more for their money buying twice the number of shares at half the price does not even qualify as an amateur investor, they are a witless investor.
Splits made sense when trading "odd lots" of shares (lots less than 100 or multiples of 100) was more costly. With the advent of electronic trading, this distinction has vanished, and so has the importance of stock splits. Even marginally informed investors know that they are meaningless.
If the construction of the data center is going to impact share price, it will be if anything on the downside, since this will show on the balance sheet as an expense. Any revenues derived from this investment are probably years off.
On the cash flow statement as investment versus revenues. On the balance sheet as an asset - cash is being exchanged for physical plant. What I think you're driving at is ROI - whether the data center's return on investment exceeds Apple's hurdle rate or return for its investments in general - whether in plant, new products or seeking return on its cash. Given that the U.S. debt levels may create severe adverse currency shifts in the years ahead, it would be prudent to park a considerable amount of Apple's cash overseas.
On the income statement as investment expense versus current revenues. On the balance sheet as an asset - cash is being exchanged for physical plant.
Sure, but that goes into book value, and investors hardly care about book value. Investors care about revenues and EPS growth. I'm not saying that building the data center is not a good investment for Apple, but that investors aren't going to get excited when they "find out" about it (if only because this has been known for something close to a year now). What will excite investors is Apple showing that whatever the data center does is something that drives profits. We don't even know what the data center is for yet.
I also bought 1000 shares back in 2004 when the stock price was $28. AAPL has split 2for1 since them making my effective cost $14 each. You do the Math!
I bought 400 shares back in about '97. With spits I had 1600 shares. Idiot financial advisor talked me into selling a bulk of my position since it grew to over 30 or 40% of my IRA - moron that I am I sold much of my stock
Since then I've bought back in @ about 78, 79, 80, 120, 140 and 170. It will be a much tougher sell by a financial analyst to get me to sell my AAPL next time. idiots
I don't think $300 is a very good estimate. $350 seems more appropriate. And that seems quite attainable by this year end.
Have more than $400000 riding on AAPL
Whoah. You got me beat by a loooooooong shot. Nice move.
I placed what seemed like a fairly modest bet on AAPL in 1997. I still hold those shares (having bought and sold others since). My cost basis on the original purchase is under $4.00 a share. Some day I am going to owe the Tax Man a ton.
How did that work? When you buy and sell stock it's a first-in, first-out calculation. So if you have been buying and selling AAPL after your original investment, you were actually selling the stock you originally bought at $4, not "newer" stock at a higher cost basis... unless I misunderstand your comment.
At any rate, $4 was an amazing time to get in... congratulations!
I bought 400 shares back in about '97. With spits I had 1600 shares. Idiot financial advisor talked me into selling a bulk of my position since it grew to over 30 or 40% of my IRA - moron that I am I sold much of my stock
Since then I've bought back in @ about 78, 79, 80, 120, 140 and 170. It will be a much tougher sell by a financial analyst to get me to sell my AAPL next time. idiots
I've long since learned not to trust the advice of a financial advisor or stock broker. There is ultimately one person responsible for the success or failure of your investments, and it ain't them.