Apple Inc (AAPL)

AAPL vs. GOOG Alphabet is a more reasonable valuation, so he'd choose this to deploy capital right now. He still really likes Apple, though it's not cheap. It's still about the ecosystem and luxury. He respects how good their products are. Beginning of a serious upgrade cycle with 5G. He's dubious of the iCar, as it's lower margin, tough business, capitally intense.

APPL vs. MSFT Apple is a consumer products company, whereas MSFT is an enterprise company. Both trade at similar multiples. Great balance sheets, buy back shares, increase dividends. Apple relies on growing iPhone and 5G. Will continue to do well. The iCar is an expensive proposition. MSFT has really benefited from cloud infrastructure growth. Better margins and free cashflow growth are ahead. MSFT is in a sweet spot and may have better growth in the next little while, so he'd choose it.

It's a must-own stock. Services is a huge part of the business and there are 8 different product refreshes coming. It is trading at 32x 2022. Risk to reward, he does not like it. Price to growth is more reasonable for other tech names like Amazon. Buy around $110.

Can Apple be more misunderstood? Yesterday, they introduced three new Macbooks, and that they'll be making their own processors to extend battery life to 18 hours. He loves their new companies, is amazed by this new battery. They make quality computers, and PCs are a hot product now. Also, the new iPhone 12 offers a marvelous phone and it's compatible with the forthcoming 5G network. Yes, Apple's PE has risen, but the company is not only a product/gadget company, but it offers a serious service stream or a consumer packaged goods company with recurring revenue. At 30x earnings, Apple is only a little more expensive than Colgate or P&G. Compare it to Costco for its recurring revenue stream (Costco trades at 38x earnings). Apple is up 82% YTD, yet has more room to run. The new president won't be hostile towards China, which benefits Apple.