Apple Inc (AAPL)

Today it is snapping a 7-day losing streak. All this bad news about China has been priced into the shares where iPhone sales are down 24% for the first 6 weeks of 2024 and 4th place in cell sales there. That's all in the shares. Apple will figure out AI later as they watch everyone else.

Historically, if you bought AAPL when the RSI was really low, you'd find that those were really good entry points. Lots of negativity and noise right now. Same as there was with META and others a year or two ago. Gets overblown, a buying opportunity. The bluest of blue chip stocks at a substantial discount. Hard to get good entry points on high-quality names. His price target is $220. Yield is 0.6%.

Difficult 2023 with iPhone sales in China. People are too focused on this. Good upgrade cycle coming along. Was trading around 35x earnings, now around 27x. Several quarters of slow or no growth. Wearables and services continue to do well. Lots of free cash. Will continue to do well. Buying opportunity, though it could fall more.

Don't. Maybe trim both of them.

He always says own this and don't trade. Apple was wise to get out of the self-driving car business. EVs is a sector which has slowed or stalled. Apple is regaining share in China, the headsets will sell more when the price declines eventually, and there's a massive, loyal customer base. You can buy Apple on faith, because it's earned the benefit of the doubt.

iPhone sales endure as do services revenue. China remains an issue, though. Also, their headset is expensive, but he thinks it's amazing while demand and sales are good and heading in the right direction.

Other names are more attractive. Underperforming S&P 500 since June 2023. PEG ratio well over 2x, a bit expensive. Decent growth of 13%, but paying quite a bit. Dominance of iPhone as percentage of revenues is concerning.

Not inexpensive. Fundamentals show it's an absolute cash machine, over $116B in cash from operations. What they do with that cash will impact its future. Great to own because of firepower of its size, scale, and business model.

An excellent company, but pick your spots in tech. He chose those paying dividends and rapidly growing earnings. Apple makes great products, but it isn't growing its earnings given headwinds in China, in particular. Also, it isn't cheap at a near-29x PE.

Looking at the previous ten-years, APPL outperformed the S&P 500 by nearly 6x. Going into the future, APPL is at a very interesting time with AI looking to be a long-term technology trend along with the upcoming release of the company's VR/AR headset 'VisionPro.' APPL has done a great job adapting to new trends in tech while maintining its market position as a leader and innovator which we believe it should continue to do. We believe that APPL will outperform the S&P 500 in the next ten years while also having intriguing near-term catalysts, but this is of course just a predicition. But, we doubt the next ten years will 6X the S&P as in the last ten. 
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Shares sold off recently on news that shares in China are slumping. But he owns many stocks are that are doing poorly in China, so he can't blame China for Apple's woes. Rather, he has faith in the CEO of Apple and worldwide loyalty towards the brand. Selling is riskier than owning it. Own it, don't trade it.

Hasn't grown revenue, a difficult story. Great balance sheet. Incredible installed base. Wearables and services continue to do well. Great business and company. Backorders will get resolved.

Owns shares in portfolio. Major holder of company. Recent lagging in share price not a concern. Very high margin business. Despite lack of new products, still believes in future of business. Also expecting A.I. growth with technology.