My father once told me that ‘the road less traveled is often less traveled for a good reason.’ He also thinks Las Vegas and Wall Street are the same place. The house always wins.
These days Apple and AAPL are winning as stock market investors have begun to look at the company through different eyes. It was Yogi Berra who said, ‘you can observe a lot by watching‘ and that applies to Apple and the stock market. So, where’s the money going?
The Small Herd
My father had a couple of other pithy sayings which apply here. The first is, ‘It’s easy to make a small fortune in the stock market. Start with a big fortune.’
The second was, ‘Find out where Warren Buffet is investing and put money into the same stocks.’ Sage advice from a Scotsman, no?
Apple’s stock is on the rise, fueled by heady speculation and expectations, flirting with record highs on a daily basis.
I don’t know if Warren Buffet is buying Apple stock, but apparently hedge fund managers are accumulating substantial positions of late, helping to drive AAPL. Hedge funds are in to to make big money, so that seems like a money trail worth following.
Apparently, the smart money in a market goes into smart companies, and the shine has worn off Amazon, Google, and Samsung (though I can’t figure out what’s going on with MSFT, now trading at 14 year high).
Amazon can’t make a profit on billions in sales, Google is a one-trick advertising pony which has failed to generate appreciable revenue or profits from Android, and Samsung’s Android smartphone business is getting clobbered by manufacturers selling cheaper Android devices, and the company has failed to loosen Apple’s grip on the premium– and highly profitable– segment.
That leaves Apple as the darling. Again. Why? Apple is a diversified business where everything is profitable and even the Mac business is growing. So, hedge fund managers and smart money are buying into Apple’s stock.
All I need now is for some kind of alert to tell me when the hedge funds start to bail on Apple. Is there an app for that?
Constable Odo says
Wednesday, August 27, 2014 at 6:11 AMI don’t think any wildly wealthy tech company with a P/E under 17 can be considered a darling of Wall Street. Tesla? Yes. Netflix? Yes. Google? Yes. Amazon? Yes. I’d say they’re the darlings of Wall Street. Apple is more like a high-class hooker for the manipulators of Wall Street.
Morris says
Wednesday, August 27, 2014 at 7:24 AMAny company whose stock is on the upswing for little to no reason is a Wall Street ‘darling’ and especially so since the hedge funds have hopped back onto AAPL.
Jill Dalton says
Wednesday, August 27, 2014 at 5:46 PMHooker or not, as long as the institutional investors are buying, my stock keeps going up in value. Thank you, Wall Street Johns, everywhere!
Jill Dalton says
Wednesday, August 27, 2014 at 5:45 PMI am huge proponent of Google. I use their search engine everyday to track how high my APPL stock is going.
[I sold 25% when it hit $100, and I will sell another 25% at $110, lock in my profits and keep the other half so I can sit back and watch it gently glide upwards over the next few years.]