constantnormal

Revising Apple's Outlook in Line with Reality

Just what do you guys mean by "long-term"?

If you are talking "long-term" as in long-term capital gains, then Andy should take his profits now, before the bear-market rally gives out and AAPL sinks (along with everything else -- slower, but sinking just the same) as PE multiple compression drives valuations toward the single-digit regimes that occur at real bottoms.

Of course, if you are talking "love-of-my-life" long-term, well then you are correct and nobody should ever sell a well-run profitable company that they are in love with, certainly not over a small thing like losing money.

There were people buying at the top in 1929 (and 1937), some buying excellent companies (at inflated values, considering the impending future) and it took decades for them to break even.

There were people in love with gold, back in the 70's, and it took 30 years to regain the levels they loved it at.

Buying a stock for love can blind one to the fact that even the best-managed, most profitable companies can have their stock prices suffer for a very long time, if the larger market environment is bad enough. The name of the game is not to own the best stocks, it is to make money owning them. Those who forget that (or have never learned it) are doomed to be parted with their money.