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?