I don't agree with this. It's risky, yes, but it's a calculated risk. It's not playing blackjack. There is sound math and historical evidence behind it.
Apple is about as recession proof as it gets, imo. There margins are 40-50%. If they need to temporarily cut the cost of goods to sell them, they'll be able to do so and still be quite profitable.
Obviously there are inherit risks with investing. I'm really big into applying math principals into them. Lots of people look at PE, but I like the much less commonly used PEG because it accounts for growth. PEG ratio is a phenomenal indication for purchasing stocks. Something like 94% of stocks perform according to what the ratio dictates I've read. That's a pretty strong indication, in my opinion.
FWIW, AAPL has the biggest market capitalization of any company in the world. There's nothing tinkertoy about it.
Patler, I completely agree with you that obviously there are stocks that are going to do better and worse. I know you obviously like AAPL, who wouldn't when they own it
, my point is saying that while there may be some better stocks out there, AAPL is pretty outrageously good. Lots of financial analysts that are quoted on appleinsider.com are saying that 600 is the new 12 month price, and that it's only going to keep going up. I've read some say that is it the best stock to buy right now. We both know it's ridiculously under valued. Eventually the market has a way of correcting itself and putting it's PE in line with other very large companies (which will make it very, very valuable). IMO, it's very safe, and it's something that I know very well and follow closely. Part of the reason I'm such a strong advocate for it is because I follow Apple as closely as anyone. It would be foolish for me to invest in some other companies that I don't follow and aren't particularly interested in supporting, because I won't know when the time is right to buy in or get out.
RG hit the nail on the head when he said a few years back to only invest in something you fully understand. For me, that's AAPL and that's why I'm such a strong advocate of it.