Apple -- is it worth buying into right now?

Question

It went down pretty low last week. Is it a good time to buy? and will it pop back up with AT&T subsidizing their new 3G line?

Answer 1

Disclaimer: I own stock in Apple. It makes up ~4% of my equity portfolio.

Do I think AAPL will do well? Definitely.

Be careful though, anyone investing in AAPL for the short term might get burned. They have made several changes that will impact their short term gross profit margin. Slipping profit margins might cause a panic sell off of the stock. Additionally, a lot of AAPL's changes will not help their bottom line during the next quarter report.

What does this mean? AAPL is a risky short term investment. I have some money set aside that I plan to invest in AAPL if the stock tanks below certain levels. I can afford to do this because I have a very long term view with my AAPL stock and can afford to hold on to them indefinitely. Furthermore, I am up ~400% on my cost basis for AAPL and can afford to take a hit.

I strongly beleive that AAPL will beat the market over the next 3-5 years. I am not so confident about how well it will do over the next year or so.

Keep in mind that I am not saying that AAPL will go up. I don't know that and even the best investing minds cannot know it. Research the company and make an educated guess, that is all any of us can do. If you get good and making guesses and diversify enough you will find that you make money on more investments than you lose money on.

Answer 2

Yes it is... however, they are really hard to come by.

Answer 3

I invested in AAPL at the beginning of the year. It gave me a lot of pain, before rebounding,now I am happy but I just sold it last week. If you are a short term investor (3-6 months) I would not recommend it. However, if you are investing for longer than 1 year, than I think it is a nice deal.

Just an opinion. Build your own before investing