Jaded Consumer

Cash Position Best for Apple Investor

Cash is obviously safer in this market for anyone with leverage than a security whose price is subject to irrational depression, and Apple doesn't have a safety net any more than other good companies that are being hammered.

However, the author of this piece misses the substance of the federal government's stabilization transactions. This isn't throwing $85Billion and $200Billion and now $700Billion into the wind to stop a storm as he suggests. I've discussed both Apple's "safety net" and this author's position on the bailout at The Jaded Consumer.

Tom B's comment is definitely on the right track for unlevered long-term investors: people aren't going back to typewriters. Or LP records. Or The Walkman. Or land-line telephones. Apple's margins advantage is sustainable in a way Dell's wasn't, and Apple's cash flow seems to make the idea of sudden failure a distant fiction.