With Apple’s stunning earnings report, higher guidance and off the charts opening sales for the new iPhone X, the company rose to peak valuation of $900 billion. If it keeps going, it will be the first company ever valued at $1 trillion. It has been a great ride for shareholders and employees who are happily holding onto Apple stock. So yes:
Apple stock is the investment of a lifetime
In 2017 alone, Apple stock is up a whopping 50%. To put that into perspective, at the end of 2016 Apple was valued at $600 billion. In one year, it has added $300 billion in value! This is higher than the value of most SPX 500 stocks combined.
Hindsight is 20/20 of course, but could you have seen this coming?
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Many Apple investors have ridden the company’s rise to extensive wealth. They prefer to listen to Jim Cramer’s mantra of “Just own Apple, don’t trade it”. Indeed, that advice has paid off handsomely over the years. If you had bought Apple stock at the depths of the 2009 financial crisis, you would be up 1,600%. That beats any index product – I’ll take it!
Even Warren Buffett is on board
It might surprise you to learn that Warren Buffet didn’t jumped on board til 2016, when Berkshire Hathaway bought a very large stake in Apple. While it seems like he’s late to the party, the Oracle of Omaha’s timing was exquisite. He bought during the last big selloff in mid-2016, and now he is sporting a massive winner. Hands down, that is an unbelievable coup.
Apple has consistently been the best option trade for the Explosive Options portfolio this year. We have bought options nine times (including the Jan 170 calls we are currently holding, which is up 20%). We have banked winners on seven occasions, several for triple-digit gains. Apple has helped carry our portfolio to great heights in 2017.
Yet doubters remain
Some traders and investors remain skeptics. The result of this poor judgment is egg on their faces, numerous lost opportunities and a lot of lost time. I know many people who fit this bill and continue to believe the best of Apple’s days are behind them. I laugh at this notion. Instead, I will let price action and technicals speak for themselves.
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