Tasty AAPL

by Miel on April 24, 2014 · 5 comments

APPL DINKs Finance We’ve been watching the rise of AAPL stock (Apple, Inc.) closely.

Apple announced a 7-to-1 split coming up in June, and the stock jumped 8% today! The word on the street is that AAPL is poised for record growth on solid earnings.

When I initially bought AAPL in July of 2011, James was a naysayer in that he felt the stock was too expensive. We’ve gone round and round about this, but my strategy is that it doesn’t matter how “expensive” the stock is, only how much it will go up in value. My initial purchase was for $331 per share and I added more to that at the start of 2012 at $423.

While I had watched the stock climb in that six month period, I also felt that I’d kick myself later if I didn’t buy more. With the price now around $568, I’m pretty happy to have cost averaged, even if that means I’ve cumulatively made less per share. My initial investment has gone up by 70% and my second batch by 35%.

My overall investment of around $20k, in 53 shares, is now at over $30k. Both chunks of cash are in retirement mechanisms, 2/3 in my ROTH and 1/3 in a rollover account. It will be interesting to see where things go, but I don’t mind have 371 to watch the show!

I bought where the dot is! I bought where the dot is!

Anyone else out there happy to have a piece of the AAPL?

Happy day!

Miel



{ 5 comments… read them below or add one }

1 Dee @ Color Me Frugal April 24, 2014 at 8:42 pm

Wow, a split on AAPL. Never thought I’d see the day! We owned AAPL until a couple years ago when we got tired of the roller coaster ride going on with it at that time. We sold it all and put it in something else, but now I am kind of wishing that we had kept a few shares. Anyway, good for you guys!

2 Miel April 25, 2014 at 9:45 am

Dee – That’s how it is with stocks, you never know what you might look back and regret one way or another. I figure you are better off in the game than out, and better to be paying attention some times. Though ignoring it all can often be a strategy as well!

3 Jason April 25, 2014 at 12:49 pm

I bought in around $500 in a couple different accounts. I could have bought lower, but wanted to avoid getting overexposed to AAPL, especially since several of my ETFs also have AAPL as a top holding. The split will present a good opportunity to partially diversify into other holdings, since we’ll have seven times the shares to trade with.

4 Kathy April 25, 2014 at 4:25 pm

We took a pass on Apple for years until they started paying a dividend. It is a fairly recent acquisition but is up nearly $100 a share from where we purchased. So in addition to the stock split, they are increasing the dividend! That is frosting on the cake….or caramel on the apple :)

5 Miel April 25, 2014 at 4:33 pm

Kathy – Yes, in addition to growth, the dividends are definitely compelling.

Jason – Diversification with a stock is definitely key. It is also important to know when to duck out and take your earnings, even if you might miss out later down the road. You just also might be thankful!

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