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Apple: Don't Sell!

Mar. 04, 2020 4:38 PM ETApple Inc. (AAPL)56 Comments
The European View profile picture
The European View
13.01K Followers

Summary

  • Like I said in my previous analyses, Apple is still undervalued.
  • After the shares rallied 120 percent, some investors might think that after this extraordinary rally a correction would be overdue at any time and must occur.
  • My approach is that I will not sell. Apple is one of the few companies that I see as an anchor in my portfolio.
  • The risk with trimming my holding is much higher than simply keeping all the shares.

Introduction

Like I said in my previous analyses about Apple (NASDAQ:AAPL), I consider the current course price to be justified and continue to believe Apple will reach some more upside potential this year. Accordingly, the title of my article was: "Apple is undervalued".

Nevertheless, this does not change the fact that many investors are sitting on an extremely high profit and are now asking themselves how they should best react to this. Also, there are uncertainties regarding corona epidemic. The last week has shown how such an "epidemic shock" can affect the stock markets. So why not just take the profits or part of the profits and buy shares again at the next correction of 10 percent or more? Of course, I also ask myself this question, as Apple is one of the most profitable investments in my broadly diversified retirement portfolio. But I have always refused a sale and will continue to do so.

Analyses

Of course, there is often no right or wrong. Every investor pursues his strategy, has his own goals and his risk aversion. This article is therefore mainly aimed at long-term investors who are uncertain whether keeping the shares is the right thing for them. I want to give them some assistance or some food for own thoughts and show them the approach/mindset they might take to the question. What do I mean when I refer to the right mindset? By mindset, I mean a holistic approach to investing. I would describe it as the most important prerequisite for investing as a long-term investor. Two elements are decisive here:

  • You need to know what you're doing.
  • You need to know why you are doing this.

Of course, this can be subdivided much further. For myself, I have identified the following four anchor points that

This article was written by

The European View profile picture
13.01K Followers
Runner of the TEV Blog | Private InvestorI am a long-term oriented investor and in my early thirties. I hold a law degree and a doctorate in law and love investing and talking about my and others' investments. I regularly write about my research and investments on various investor platforms and the TEV Blog. **My articles represent my opinion only and in no way constitute professional investment advice. It is the responsibility of the reader to conduct their due diligence and seek investment advice from a licensed professional before making any investment decisions.**

Analyst’s Disclosure: I am/we are long AAPL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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