can you please remind my wife???
2 Likes
No doubt, it is going like that ! They will survive with dividends and buyback, but not on growth.
Canāt trust Jil, change position on a dime.
For old timers, bought at $3 or $10, it is good to hold, but not for those who bought it at $225 !
It can not be buy and hold for $225, it is dead-end or ever loss.
S&P can recover 6 to 9 months, but AAPL it is long way. Practically, not worth buying at $225 and holding it for recovery, better to take loss.
If I blindly hold, even after TC revised estimate, then I am fooling myself. It is better to ride with some other stocks.
After Dec 26th purchases, I sold only AAPL, rest are all doing great progress, holding it.
hahahaā¦
you are funny Mr Big Portfolio. By the way, āno matter whatā is a very dangerous phrase to use in investingā¦ oh, I forgot, you got it all figured out
3 Likes
Yes, you are indeed old and broke no matter what 
You are right, I am broke. I am actually one of your tenants. I canāt pay anymore.
The liberal eviction judge will side with me when I show her your ābig portfolioā posts
I didnāt know that you are a scum in addition to being old and broke.
What was Ciscoās PE ratio at the peak? What is Appleās PE ratio?
3 Likes
future P/E ratio depends on what E does in the futureā¦
Current PE ratio. Cisco was 174.
2 Likes
good point. The decline may not be quite like CSCOās, but it could certainly stay flat for a long time.
Also, donāt forget about buybacksā¦ I wonder what AAPLās PE would be if they had done no buy backs since 2008? I doubt CSCO did stock buybacks in the 90ās
Apple is still generating a ton of cash. They can do more buybacks or boost the dividend. Even if total dollars earned is flat, the lower share count will increase EPS. That would mean even if PE ratio stays flat the price will increase.
1 Like
agreedā¦ but the scenario you are describing doesnāt sound like a growth stock anymore at allā¦ certainly not the place to keep your money for the next 20 yearsā¦ Plenty of stocks paying higher dividends selling things that people will not stop using anytime soonā¦
this can all change, in my opinion, IF they bring the magic back and come up with the next big thing. The Apple watch didnāt do it (my wife has oneā¦ geez, what a waste of money)
1 Like
The proper comparison is with Microsoft from 2002 to 2014, the Ballmer years. It made tons of money from windows and office in those years. Increasing revenue and profit but stocks went nowhere. Investors concluded Microsoft was no longer growing and no matter how much buyback it did stocks remain depressed.
1 Like
On any case, AAPL lost appx 450B market cap (I funded some portion of it - my loss) which is more than FB current market cap ! It is too difficult to come back to the 1 Trillion cap.
Even if Apple jumps back, it is hard to catch up Amazon and Microsoft now.
Here you see, even Samsung drop on expected results due to slowing down economy of China (Not tariff impacted).
I do agree. One shouldnāt be buying AAPL expecting a whole lot of growth. Personally, I hold on to it as a value stock. I benefit mainly by collecting big dividends and using its size as a cushion against margin.
1 Like
Comparing the two charts of CSCO and AAPL shows plenty of flawed logic. Why would you compare the two?
1 Like