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Friday, March 27, 2015

Why do I like Apple even better

I have been talking about Apple (APPL) for a few years now including both long-term investment vs short term trading. If you want to know how I did in the past for “timing” the investing/trading opportunities for AAPL, here are some examples: I got in close to the long-term bottom around $400 (pre-split) back in 2013. Since then I have also pinpointed almost each major highs and lows for trading opportunities (see here and here). The most recent one is still happening now: when AAPL reached all time high at $133, I called the short-term top and advised to sell covered calls to protect. As I said, it could dropped to $120 level. Indeed, AAPL did plummet quickly to about $122 and stabilized. As I said, I think AAPL is likely having bottomed for this time and is poised for the next bull run.  Apple for me is certainly a great company for long-term investment that you can hold for long long time. So some people are puzzled and questioning why I’d bother to trade for AAPL if I think it is a good long-term stock. Well, by now hope you all know that I’m not only a value investor, but also a very active short-term trader. For my long-term AAPL positions, I simply keep and don’t touch them. Dividend reinvestment for good stocks including AAPL is the way to go for long-term wealth building. But this does not mean we cannot also make some good short-term incomes by trading. For many people, trading is simply gambling. They blindly follow the talking heads or tips from others and get in or out of stocks, thinking they can make good money. But believe me, for most traders, they will end up losing money. For myself, I don’t do trading based on hope; rather I call myself as an informed speculator for trading opportunities based on sound technical analysis. I hope my track record for AAPL has demonstrated that.

 Well my today topic is not about short-term trading for AAPL. Rather I’m adding one more piece of evidence why AAPL is a great company for long-term investment. I’d think everyone will think about AAPL as a great company on mobile devices such as iPhone, iPad, iWatch etc. Indeed Apple has revolutionized the way people communicating with each other and has since then being leading the trend. In the foreseeable future I don’t see anything will change on Apple’s super leading position in this area but as a long-term investor, I’d be nervous if Apple were solely relying on one set of electronic products. As we all know, people’s taste on electronics can change very quickly. Just think about it who was interested in Apple 5 years ago when Blackberry was dominating the mobile phone sector? If Apple were simply working on updating the models of iPhone and iPAD etc, I’m not sure I’d feel comfortable to stick to Apple for long-term. Fortunately Apple is not disappointing me and has been working very hard to lead the world by creating a whole new ecosystem that can touch almost all aspects of our life. Pretty soon, your iPhone will not be just for communicating purpose, it can help control a lot of things for you in your life and virtually all the electronic devices or appliances at your home can be remotely controlled or monitored via your iPhone. Now you can also use iPhone to pay for your shopping with AppPay. This is another huge market to be realized by Apple. Now Apple is moving towards another enormous market, health care and drug development. See the report here. I‘m so excited to see this new move by Apple, which will further strengthen its long-lasting profitability potential. I like Apple for my retirement portfolio but of course I will continue to trade for income for Apple when the opportunity presents itself.

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