Seemingly everyone in the market — from the financial press to the pundits and professionals — has an opinion on Apple (NASDAQ: AAPL).
Every single one of them should be discarded.
I have never seen more time and energy wasted.Seriously, what’s the point of having an opinion on Apple?
Well, the reason is consumption.Investors eat up these opinions and always crave more.So the industry gives it to them in massive doses.
The latest and greatest opinion on Apple comes from Henry Blodget.
Oh yes, Mr. Dot-Com Era himself was making headlines on Monday stating that it was time to sell Apple.
With the company set to report earnings after the market closed on Tuesday, Blodget opined that Apple had run its course.
In the two years of owning shares of Apple, Blodget has done very well.
The question for him and other Apple opinion-givers is this: What will Apple do next?
I remember recommending Apple shares long ago when the stock was out of favor and traded for less than $100 per share.
Every $100 jump thereafter seemed to be accompanied by the time-worn what-will-Apple-do next-question.
And each time the company answered the question with a bang and, more importantly, massive profit growth.
And still the questions come. Can Apple keep it going?
If there was ever one company that deserved the benefit of the doubt, it would be Apple.
Betting against them or being out of the stock at the wrong time has never worked for Apple.
Well, I shouldn’t say never, as the stock did tank when it peaked in 2012, but guess what?
It recovered those losses, too, and then some.
So again I say why the opinions on Apple when there is really only one opinion to have? Be long and strong this stock. Period. End of story.
Tuesday’s earnings report won’t matter a hill of beans. Will it go up after a blowout quarter or will it be a sell-the-news event, triggering a correction in share price?
It just doesn’t matter.
Blodget should know better, having been at the forefront of the dot-com boom and bust. He should understand the difference between hype and value.
Most importantly he should know that Apple shares are priced appropriately for what the company is today.
Apple is a reliable innovator that trades for a multiple of earnings that is not just reasonable, it is cheap.
How anyone can think differently is beyond me.
Blodget shouldn’t be talking about selling here. He should be talking about buying the stock.
If indeed shares of Apple slip after the earnings report, investors should use the discount to acquire shares.
It matters little what the next innovation will be, trust that there will be innovation and Apple will lead the way. It always does and always has.
What more can you ask for as an investor? Apple is one stock that should be in every portfolio, period.