Apple

  • 05 Dec
    What You Can Learn From How The Market Reacts To News

    What You Can Learn From How The Market Reacts To News

    • I’ll analyze a few scientific studies on how news impacts stock prices and also a couple of interesting case studies.
    • There are some rules that can be applied to news and stocks.
    • It’s interesting how Wall Street always weighs the short term much more heavily than the long term.



    Introduction

    I’m sure you often see abrupt price moves with the stocks you follow or own. Those abrupt moves—which can go to 10% or even 20% in a day for a relatively stable business, 20% to 50% for a mining company, and even more than 50% for a pharmaceutical—are due to some kind of news coming from the company or related to the company that makes investors take action and sell or buy.

    Today, we’re going to discuss how stocks usually react to news, the information asymmetry, the stock price drift, and how to take advantage of the sharp price moves. More →

  • 04 Aug
    Think The Biggest Companies Of The S&P 500 Will Outperform? History Says Otherwise

    Think The Biggest Companies Of The S&P 500 Will Outperform? History Says Otherwise

    • The strongest companies in the S&P 500 may look invincible now, but history shows us this won’t last forever.
    • None of the companies in the S&P 500’s 1980 top 10 are still there now.
    • Top 10 S&P 500 companies largely underperform the S&P 500 in the long term.

    Introduction

    Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and Johnson & Johnson (NYSE: JNJ) are the 5 largest holdings of the S&P 500 accounting for 11.74% of the index. The other 495 companies account for 88.26% of the S&P 500 which is a pretty strong imbalance, but that’s how the S&P 500 is formed. Its weightings are based on market capitalization. The bigger the market capitalization, the bigger the weighting in the index. More →

  • 23 Jun
    Does It Make Sense To Buy FAANG Stocks Now?

    Does It Make Sense To Buy FAANG Stocks Now?

    • With the exception of AAPL, all FAANG stocks have beaten the S&P 500 in the last 5 years.
    • By using Graham’s growth stock formula, I’ve determined the real value of FAANG stocks in order to see whether they are still a good investment.
    • Surprise, surprise, only one stock is overvalued, while some are still bargains.

    Introduction

    FAANG stocks—Facebook (NASDAQ: FB), Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Netflix (NASDAQ: NFLX), and Alphabet, i.e. Google (Nasdaq: GOOG, GOOGL)—have been the clear drivers of the current bull market. And all but AAPL have significantly outperformed the S&P 500 index.

    The S&P 500 index is up 78% in the last 5 years, AAPL 73%, GOOG 228%, AMZN 334%, FB 389%, and NFLX a whopping 1,454%. More →

  • 08 Jun
    How To Invest For Your Children Or Grandchildren

    How To Invest For Your Children Or Grandchildren

    • Whether investing for children or retirement, the goal is to maximize portfolio value at a specific future date, not now or in the next six months.
    • Be wary of fees as they eat up a huge part of your future wealth. I’ll show how to avoid them.
    • Temporal diversification and buying companies that create value will do wonders over time.

    Introduction

    Our greatest treasure is, of course, our kids. I’m a proud father for six months now and I must say that every day since my child was born has been the most beautiful day of my life.

    In that spirit, I want to provide the best possible environment for my kid to grow up, but also to enable him to do everything he wants when he is older. This has me, and probably many other parents or grandparents, already thinking about college tuition money, start-up capital for a business venture, helping with the down payment for a house, or simply paying for a wedding or a honey-moon. The notion that you can build a substantial nest-egg with small monthly payments is very attractive to me and will also provide a great educational experience to my kid as it will show him how small actions over a long period of time can bring huge results. More →

  • 07 Jun
    Do You Have a Deterministic Or Probabilistic Approach To Investing?

    Do You Have a Deterministic Or Probabilistic Approach To Investing?

    Introduction

    The human mind is wired in a deterministic way. A proposition is either necessarily true or it is false.

    For example, you either like a person or you don’t. There isn’t an in-between where you would say that there is a 67% probability you like someone. The same principle applies to investing, we either think the market or a stock are going to go up or down. What very few can do is to think in a probabilistic way. But mastering a probabilistic way of thinking would do wonders for your portfolio.

    Today I’ll quickly analyze Apple (Nasdaq: AAPL) as both a strong bullish and a strong bearish case can be made to explain the probabilistic and deterministic approach to investing. More →

  • 27 Mar
    Want To Find Great Investments? Find Mismatches Between Market Perception & Reality

    Want To Find Great Investments? Find Mismatches Between Market Perception & Reality

    • A great company isn’t always a great investment, while a bad company can be a great investment.
    • In this environment, it’s very difficult to find great investments as only 35% of listed companies are creating value for shareholders.
    • The essence of investing is to find mismatches between the market’s perception and the company’s future.

    Introduction

    One of the most famous investing quotes is Buffett’s reflection on owning great businesses:

    “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

    In the current market, investors seem to focus only on the “wonderful company” part and totally forget the “fair price” part. More →

  • 25 Oct
    The First Two Weeks Of Earnings Season Are In. Warnings Ahead.

    The First Two Weeks Of Earnings Season Are In. Warnings Ahead.

    • Don’t be fooled by earnings growth in financials and utilities. The underlying risks are growing too.
    • Lower margins are the first indications of a recession being around the corner. Global government and monetary stimulus make it impossible to know if one will be coming sooner or later.
    • Without buybacks earnings would be terrible.

    The Earnings

    The first two weeks of earnings season have passed and, according to FACTSET, the combined earnings released so far are better than expected but still negative. 23% of the companies in the S&P 500 have reported earnings and their aggregate earnings decline for Q3 2016 is -0.3%. More →

  • 26 Sep
    An EV Future: Investing Dos & Don’ts – Specific Investment Opportunity Disclosed

    An EV Future: Investing Dos & Don’ts – Specific Investment Opportunity Disclosed

    • We won’t mention Tesla (except for right here).
    • Margins are essential for profitable long term investments.
    • Alternative related investments seem like the best option for low risk, high reward pre-hype investing opportunities in the electric market, the opposite is true for oil.

    Introduction

    The rumor is that Apple Inc. (NASDAQ: AAPL) is searching for a partner to develop a car that many believe will be all-electric. This would be only one additional player in the long line of automotive manufacturers that have embraced the electric trend.

    In this article, we will look at how big the electric trend really is and what the investing opportunities and risks related to the new trend are. More →

  • 29 Jul
    Corporate Earnings of the S&P 500’s Top 10: Why It Is Important for You

    Corporate Earnings of the S&P 500’s Top 10: Why It Is Important for You

    • Corporate earnings and fundamentals are variable, pick the stocks that best suit you.
    • There are low PE ratio stocks, high growth stocks, and high dividend yielders – anything you might want.
    • But be aware: some companies engage in buybacks that are detrimental to shareholders’ value.

    Introduction

    When you add up the top ten companies by weight, they account for 17.7% of the total weight of the S&P 500. For investors who are heavily invested in the S&P 500, following the earnings of its top ten companies is essential in order to understand the risks and rewards of being invested in the index. In this article we are going to assess the current market situation by looking at what has been going on with the 10 biggest companies in the S&P 500 index. More →

  • 10 Jun
    Global Smartphone Growth Isn’t Done Yet – Should You Invest?

    Global Smartphone Growth Isn’t Done Yet – Should You Invest?

    • The smartphone trend is bound to continue as 25% of the world has low penetration levels.
    • 2015 was stellar in growth so it is logical that 2016 will be somewhat slower.
    • Valuations are really cheap when compared to the general market.

    Introduction

    The smartphone industry is not only interesting because it includes the biggest company by market capitalization (Apple – NASDAQ: AAPL) but also because it is in a global growing trend and has low valuations. This article is going to provide an overview of the industry and its two biggest players. More →