Why buy Apple?As a fairly recent reader, I am curious as to why Apple is not in the Stock Gumshoe Portfolio. Is it not a good buy in the current market, on does Travis consider it a poor investment?
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The list of stocks NOT in my portfolio is very long… I owned Apple for many years, my final position was stopped out last year after I had taken profits a few times along the way.
Almost everything I’ve sold in the past couple years has been a mistake, in retrospect, and Apple is obviously a fantastic company and the best consumer brand in the world,
So there’s nothing particularly bad about owning the stock (we all have big chunks if we own index funds, anyway), I just determined it was too expensive relative to the growth I expected at the time. I think Alphabet is a better value and Amazon a better growth company than Apple from these levels.
I expect my assessment is colored by the fact that I bought Apple long ago, when it had a bizarrely cheap valuation, far cheaper than the overall market… so it’s tough to adjust to it being at a stiff premium to the market, even if that premium is deserved to at least some degree.