I’m regularly asked several versions of essentially the same question; “If I could own only one stock, what stock should I own?”
The short answer is, Apple Inc (stock symbol: AAPL), but not yet.
Yesterday, Apple posted the results of another amazing quarter, in a long string of incredible quarters. iphone sales were up 131% year over year. ipod sales are holding their own, up 12%. And earnings per share were up an astounding 86%
Apple’s quarterly report was filled encouraging stats and news, including optimistic ipad sales info. It is noteworthy that the ipad rolled out too late to be included in the quarterly results just released, so the good news expected from the ipad won’t be reflected until the next quarter results are released.
In my opinion, the most telling stat in the Apple quarterly results was that Mac computer sales were up 27%. To me, this indicates that it’s Apple’s world – we just live in it! Apple has created an integrated network of devices that all connect back to, and around, the Mac. Apple might be the best run company in America.
That’s a much abbreviated reason why Apple belongs in every portfolio. However, don’t rush out to buy AAPL today. Yesterday, when Apple released their quarterly earnings the stock price shot up as high as $265/share in after-hours trading. This morning it is trading under $260/share. I think it will pull back further and can be bought around $230/share, rewarding those who are patient.
I’m not advocating that anyone buy just one stock blindly. But if I had to own just one stock, hands down, it would be Apple (AAPL).
Beverly Highland Capital