Apple is a large cap( 409 $B) company. Smart investors use large cap
companies to make "boring" (20-30%) gains to support their portfolio incase
their "speculative" plays fall through. Yes I fully understand that the tech
market is not the same as the consumer staples market and fully aware of
how easy dominate companies can fall of the map (Blackberry, Nokia, etc).
However, the new IOS7 software, fingerprint technology, advanced apps, etc
do not make it seem that Apple is prepared to "fall off the the map" anytime
soon. In fact, that actually sounds to me like a competitive advantage b/c
the last I heard no one had fingerprint sensing technology and A6 processing
chips designed by one of the most advanced and fastest growing chip
processing companies in the world (ARMH).
QUESTION: So how do investors make $ off of these "boring" large cap growth
companies? It's not like investing $5,000 in Apple will make you worth $1M
five years from now (sorry but it's not)
ANSWER: They make money by buying shares when others are scared and dumping
the company. People get caught up in the fear and unbearable gut feeling of
seeing Apple shares tank day after day. And then the sharps come in and
scope it at the bottom.
Wall Street is having a field day shorting this stock as their pal's write
continuous #$%$ articles to scare novice investors. In a few weeks when "
they realize they made a big misread on Apple." (Sorry guys actually not
sorry b/c Wall Street intended to play you as a fool.) These institutional
investors will begin to cover their shorts and ride Apple long as they
capture gains from their new smartphone sales. Once the product life cycle
of the iPhone 5s is over, investors will then dump Apple and the process
repeats itself.