The Benefits of Long Term Investing: Less time and emotional stress
One of the issues with day traders and their lack of success is that most, after a while, get the feeling that they ‘need’ to be trading. But not every day provides good trading opportunities. Like a gambler in Vegas, staying at the table (or trading) longer than you should is a pretty-much guaranteed way to lose money. Day traders have difficulty stepping away from the game, as they fear missed opportunity. Long-term investing requires much less daily involvement. You do not need to monitor the market constantly or make split-second decisions. This makes it ideal for individuals with full-time jobs or other commitments, and it also reduces the emotional stress associated with reacting to every market movement. Day trading, on the other hand, is highly time-intensive and emotionally demanding, often leading to burnout and impulsive decisions.
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They report Tuesday. The whole sector has stunk, hurt by the weight-loss drugs which reduces cravings for booze. Also, people are switching from booze to weed. Also, the young are more careful with their health. Meanwhile, the buyers of their Mexican beers over concerns by the Hispanic community over mass deportations. This has been downgraded by many analysts. He expects another miss.
Is -6% the past year and -19.7% this year, and has been trading sideways as the rest of tech has been roaring. The company last gave tepid guidance because of Trump (25% tariff on iPhones), and gave an adverse ruling against their app stores. The stock is out of favour, uncertain, but he will hold on. Past downturns have turned out to be buy opportunities. Trades at 28x PE, down from 35.5% at its peak last July. Their recurring service revenue now amounts to 25% of overall, and growing faster than all other businesses. AAPL has bottomed several times in recent years, bottoming at 25x PE, the last time in early April after tariffs, then quickly recovered. During the 2022 bear market, the PE plunged to 20x PE, then rebounded strongly. Since it bottomed at the start of 2023, shares rallied 93% of the time in the next 3 years. Meanwhile, the earnings growth is 14% projected this year, while the S&P is projected at only 9.4%. So, Apple deserves a premium, now trading at 28x PE vs. the S&P's 23x. Apple PEG ratio is under 2 while the S&P is 2.5, so if Apple had that PEG ratio, AAPL should sell at 35x PE and $250. Therefore, buy Apple at $180, too cheap to ignore, or 25x PE, but if it shares off the negativity, this should trade at 35x PE.
Its performance has been disappointing, and we do look at momentum of stocks (negative here). But we still think it is worth holding for mid-cap growth investors. It has $500M cash, and good earnings growth is expected still, and the sector outlook overall remains robust.
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