Apple's Move From $78 to $202 Shows Importance of Closing Ears and Opening Eyes

Apple's to an all time high was more than predictable, it was obvious.

I've long since forgiven myself for unloading my Apple stock in the summer of 1997.  I think I sold it at the day when it hit its all-time low.  I know that the company was losing market share to Dell and Microsoft, and was selling a unique product, but only into a few school systems around the country.  Steve Jobs had left the company and had given up.  The company had about $4 in cash and when it hit $10, it still seemed poised to go to its liquidation value. 

I no longer think of how rich I would be if I were to have held it for these last 12 years.  I've forgiven myself.

Where I cannot forgive myself is for what I did earlier this year when I sold at $100.  The move from $78 to $100 was blistering, and the economy was in shambles.  Everybody was talking about a relief rally in a bear market.  There was no shortage of talking heads speaking about a $50 price target.  I at the very least thought that I could buy it back at $85.

Apple has been a phenomenonal company for many years.  I knew that.  I also knew that the IPhone was taking over the world, and knew that their computers are finally gaining widespead acceptance.  I could go by any store and you would see that Apple was unaffected by the recession.

Yet, I continued making excuses for why the next pullback would come and raising the point at which I would be prepared to buy.  I held off buying before earnings, believing that they might disappoint and that would give me an entry point much lower.

With Apple over $200, I am done with the excuses.  I know it is going higher.  I'll probably just jump in and buy over the next several days. 

I just wish I had used my eyes and my brain, and closed my ears.

Jason Rodgers
Jason Rodgers: Jason Rodgers was an experienced research analyst for a major bank prior to retiring to run his own investment consultancy in beautiful Lihue, Hawaii. Jason contributed articles to BestCashCow from 2008 to 2014.

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  • Sam Cass

    October 20, 2009

    You like to sell low and buy high. Now is not the time to buy Apple. Microsoft is launching a counter-attack with Windows 7, which is supposed to be very good. And Google Android is being released on over 20 smart phones over the next six months. The Verizon Droid has a lot of buzz in the tech press and is supposed to be a potential iPhone killer. Either way, the category is about to get much more competitive.

    Apple will face pressure on all fronts. Buy low, sell high. Don't do the opposite.

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