Apple Inc (AAPL)

This is a security blanket in times of volatility. A big, long-time holding for him. Big product and earnings announcements this week. There could be another positive surprise coming. The analysts underestimate the new phones--they could have a good impact on the bottom line. (1.4% dividend, $237.59 price target)

(Past Top Pick April 17, 2018, Up 25%) Their customers are fiercely loyal. Unnoticed is their internal semi-conductor development as well as their ability to combine hardware and software. (Also a top pick.)

Terrific long-term. Their eco-system is very strong with loyal customers, and there's a transition from Android phones to iPhones. They have over $100-billion in cash overseas after debt. Most of that will boost the dividend and share buybacks. He disagrees that Apple is no longer innovative, like the A.I. on their phones. Surveys show that iPhones are popular with teens, who will likely stay with Apple when they become adults. (1.32% dividend yield, Analysts' price target: not given)

It his largest holding for clients and one of his largest holdings personally. When you leave your house the most important thing to have is not your wallet is your iPhone. He loves the company. Once people have their iPhone people don’t switch so he likes the fact that the company brings 70% of their revenues from this product and 90% of their income.

(Past Top Pick, June 14, 2017, Up 53%) He's excited about its long-term. Apple remains innovative, and that will continue in AI and VR. It's a huge revenue generator, so it increases dividends. Their service business is growing rapidly. Their computers continue to sell at a premium. He expects stock buybacks of $180 billion in the next three years, so EPS will continue to rise. Don't focus on the number of phones they sell each quarter.

For him to get a decent return for 7 years it would have to be a two trillion dollar company in that time. This would be an average return from the market. The law of large numbers and competitive numbers could get in their way.

A stock split would not impact the valuation in his opinion. It is an institutional darling and the top of its class.

Apple has gone parabolic, which suggests it’s vulnerable to a pullback. Usually see a runup into its fall event (September 10 this year), and then a selloff. Don’t get into it now, wait for tech seasonality in October.

(A Top Pick Aug 4/17, Up 45%) It is in his top 5. His model price is $243.96 or a 9.5% upside. Warren Buffet is buying a little more.

(A Top Pick Sep 20/17, Up 40%) He stuck with it. He thinks they are doing a lot of the right things. The subscription and services model has been a good model for them. There is an announcement coming in September which he thinks will be positive. They are returning money through buybacks and dividends.