Assuming you bought Apple stock a few years ago, you’re probably quite pleased with yourself right now and you should be. Few stocks have performed as well as Apple’s stock in recent years.
Back when AAPL was selling at around $40 or so I though about buying 100 shares. Then it went to $60 a share and I thought, “No thanks.” A 50-percent increase is the absolute upside, right?
Then the stock went to $100. Again I thought, “That’s over a 200-percent gain. Who buys a stock that’s run up that high? Not me!”
For much of Apple’s historic run I sat on the sidelines, peering at the latest price as it headed into the stratosphere, completely comfortable that nobody with any sense buys a stock that’s gone that high so quickly.
Because, sooner or later, gravity takes over. What goes up, must come down.
AAPL is pushing $600 a share. I would be living somewhere else besides Brooklyn had I been able to afford a thousand shares back in the day.
Apple shows no sign of slowing down. The Mac is on fire. The iPhone continues to grow crazy profits. The iPad is the wonder darling of the 21st century, and perhaps the future of personal computing.
Apple has about $100-billion in the bank. It has the highest market cap of any company in the world. It’s worth more than double nemesis Microsoft. Try as you might to go all negative on what Apple does, nobody is doing better.
What could go wrong?
Microsoft once had a market capitalization that exceeded AAPL today, and look what happened. Times change. Trends change. Technology changes. Gadget buyers are a fickle bunch. What Apple does next year may fall flat, out of favor, and send the company’s fortunes onto rocky shoals.
Who wants to buy a $600 stock when just a few years ago it was $40. Does that make any logical, pragmatic sense?
Come on, sympathize with me. As proud as I am that AAPL is soaring higher than Eddie Murphy’s career is low, I’m saddened that I didn’t jump on the stock when I could afford it, and fearful that if I jump on it now, gravity will take over.