Apple Inc (AAPL)

Sticking to what it does best -- strong products with high margins, expanding services, tightening up the ecosystem. Breaking out to new highs, which is a great technical structure. Technically continues very strong. Lots of cash. 

Not high beta, only slightly above S&P. Not most exciting growth. Not in AI, but you can't own just AI. Bit of a premium of 34x PE for 13% growth, but not many do what it does.

He still owns it but is selling some calls to raise some income. He raised the hedge for protection of the portfolio after such a big run. It was only about $175 a year ago. Had $111 billion in revenue with 49% gross margin in the last quarter. He feels it is pretty fully priced.

Apple's the one to watch in the second half of 2026 given product launches, while the Mag 7 has fallen from highs.

We're waiting for their refresh, for their AI story to pan out. What's keeping shares buoyant is the anticipation of their new products coming out and could eventually lead the Mag 7.

As they keep raising prices on their phones, will the telcos keep subsidizing the prices of those phones?

Stay invested -it has an upgraded Siri. The stock went dormant for a few years. Traditionally Apple has let other groups do the heavy lifting, then taken a more mature situation and running with it...eventually owning it. It did this with music, tablets and phones. It is the same with AI but Siri has been a disappointment. They say they will advance it by co-operting with Google to use Gemini. It is a larger and larger piece of the business (30%) and very profitable with about 70% profit margins. There has been an acceleration of revenue, earnings and cash flow but the market is just starting to react to this.

Holds a big position. They get the benefit of the doubt when it comes to AI. Their AI presentation last week was vague, but was enough there to keep you interested. If you bet against this stock the past several years, you were on the wrong side of that trade. Also, it isn't spending a lot of money to chase AI. Apple will get there eventually. It will continue to move higher.

Recent event felt like cleaning house, not very exciting. Siri upgrades with Gemini are important. Price runway not all that great. When it gets around $300, he's selling 1-2 week calls to earn some income. 

If you don't already own it, you can buy it here, and maybe ~$280-285; probably won't go much under $275.

AAPL has done in AI what it's always done -- let the other companies spend the $$, and then just take the resulting product. Very smart. Wait and see who makes the better mousetrap, and then score a deal with them. 

Not cheap, very hard for a value investor to buy. However once someone's in their ecosystem, it's like "Hotel California" (you can never leave ;)  You'll pay whatever it costs to stay there. Phenomenal products, each year revenues move more toward services (very high margins). High moat. Recurring cashflow.

Close your eyes, buy, tuck it away for a while. Iconic company that will do reasonably well.

Its 4-year chart shows Apple is now at the top of its trend (analyst target price), meaning that Apple is now priced at its 2027 price target. Take profits and buy Adobe or Mosaic.

No one will switch from Apple products because they were disappointed by today's AI announcement at WWDC. That's silly. Apple will keep improving. Apple is a leader in this stock market.  

It isn't raising billions to develop AI (like its peers are), but is piggybacking on their peers' research. They're probably right to not invest, because the cost of the AI build-out is insane, so can those companies maintain spending? On Monday, Apple holds its Worldwide Developers Conference.