AAPL over the years

There’s something to be said about buying winners. Winners continue to win, and in the case of stocks, they keep making new highs. I know that AAPL is a favorite holding of Howard and his hedge fund’s strategy of finding and investing select stocks making new 52 week all time highs is a smart. The trick is to buy the right company making the high.

It’s safe to say that Apple is the right company, its emerged as an innovative powerhouse once again. Steve Jobs and company sure have been busy, first the iPod (and iTunes), a new generation of desktop computers running on Intel chips, and now the iPhone (out soon). People are loving it and buying like crazy. APPL made another 52 week high yesterday.

Good company + Good Products + Strong trends = Strong Price Appreciation.

Update

Here’s Apple right as Covid19 hit:

and here is AAPL now in November 2020:

These prices are split adjusted 4:1 so you’d have 4 times the amount of shares if you’ve owned them a long time.

Here’s what it looked like without the price adjustment, you can see it hit $500 a share. Amazing!

What am I trying to say here? Holding the right stock in a strong trend can be insanely profitable. I made a ton of money on AAPL over the past few years until I cashed out in 2020.

Trend Following vs Passive Investing

I’m very fond of saying that passive investing wins, and it does. Diversifying a portfolio over different asset classes for your age wins in the long run, think of it as trend trading/following the market with a handful of funds and ETFs. You broaden your chances of catching multiple long term winners like APPL, AMZN, and others. That is smart to me.

If you’re really good a finding stock market trends then by all means put a bit of money into the market and ride the trend. If you’re NOT good at finding trends, then just invest passively in good and broad market mutual funds or ETFs.

Learn Stock Trading, Investing, and Risk Management

There are a handful of financial and trading books that have made a HUGE impact on my investments. If you want to trade and learn about money and risk management then I suggest you get the Van Tharp book. If you want just focus on long term investing, get the Random Walk Down Wall Street book.

Hell, get them both. I owe my wealth to what I learned in those books.