Apple Stock Analysis – Focus on Long Term Investing
As a Buffett fan, I like to follow what he does and try to understand why he buys what he buys.
When it comes to Apple, the key is that Buffett is buying the business, while most others are speculating with the stock.
Having a business attitude when investing in Apple, will make things easier to grasp.
The first article I wrote about apple was in April 2016, on Apple’s 40th birthday. In 2018, I wrote another on why I think Buffett has been investing in Apple (AAPL). Since then, not much has changed for the business as AAPL is still printing cash, doing buybacks, paying dividends and strengthening its moat by enlarging its ecosystem.
The recent, China related revenue warning issue is significant, as lower guidance always is, but I would argue that AAPL is still the same business as it was in 2018, when the stock was above $200 and in 2016, when the stock was below $100. The media noise surrounding AAPL makes it really difficult to remain focused on an AAPL’s investment thesis, and makes it easy to shift your focus towards speculation. As would Buffett say about living in Omaha:
I like the lack of stimulation here, we get facts here.
Being an investor, means that you look at facts; earnings, which actually didn’t fall in comparison to Q4 2017, didn’t go negative as some are saying and the company bought back approximately 8% of shares over the last 12 months.
For more information, please check my video where I share my views on Apple:
0:00 Long term focus on AAPL
3:27 Why is Buffett buying AAPL
10:00 Apple’s stock and you!
10:36 The market on AAPL
11:27 Quarterly earnings comparison
12:28 Will AAPL go bust?