7 Reasons Apple Shareholders Should Be Cautious

Brett Arends advice in The Wall Street Journal:

Apple investors could be excused for feeling on top of the world. Another blowout quarter has sent the stock booming to another all-time high. The iPad seems to be a success. Everything the company touches seems to turn to gold. Savor the moment, by all means. But don’t get complacent. If you’re an Apple shareholder, here are seven things to be concerned about—and one thing you can do about it.

Arends’ insurance is put options which pay out if the stock falls.

3 – The share price. At $260, Apple’s stock price has more than doubled in a year. No one knows the future. And the more it rises, the less attractive it gets.

4 – Steve Jobs’ ego. One thing keeping Apple from lots of extra iPhone sales to business users is that Mr. Jobs, for some reason, has a thing against keyboards.

7 – Steve Jobs’ health. We all hope Mr. Jobs enjoys the best of health and lives to a ripe old age. But he still looks worryingly thin. This is something for investors to keep an eye on.

#3 is scary. #4 is silly. #7 is scary.


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