Thursday, December 20, 2012

Don't Sell Your Apple Stock

"If you own Apple stock, odds are good you bought it for the wrong reasons. Don’t sell it for the wrong reasons, too. 
The tech giant’s shares have plummeted from a high of over $700 in September to around $521 today, driven by a worry that the iPhone 5 isn’t selling as well as initially anticipated, a shifting sales mix that tilts more toward lower-margin products and investors seeking to take profits before 2012 comes to a close. 
For a while, there was nothing but love for Apple. It’s ubiquitous, cool and makes a lot of money — all of which are terrible reasons to buy it. 
“Attention is a scarce resource. When there are many alternatives, options that attract attention are more likely to be considered,” wrote Brad M. Barber, a professor in the Graduate School of Management, University of California, Davis. There’s certainly no shortage of media coverage about Apple, which is still up nearly 30 percent for the year in spite of its recent slide...."

More at Why now's not the time to sell Apple stock.

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1 comment:

  1. Thanks for posting about this, I would love to read more about this topic.

    ReplyDelete