Caveat Emptor

This is an update on my recent sale of apple stock. I had a recent buy on apple stock into the price decline of Apple stock at USD 169, I have sold it off following the hitting of my price target at USD 176.78. Despite maintaining a general stance of buy and hold for the long term, there were several red flags that prompted me that Apple best days might be over. Original thesis : Stalwart stock.  Buy apple as market sentiment unruly battered down apple stock due to hearsay and speculation of poor earnings report.  There is significant margin of safety from buying a cheap stock that has a strong brand, impressive cash hoard, and ability to maintain its profit margin due to its incredibly sticky ecosystem and users.  There is potential new innovative products that Apple can develop and sell at a premium due to strong branding. Revised thesis : No growth stock.  Looking at its numbers, Handset sales have declined steadily and Apple is mainly mi...

High level summary Thesis : Slow Grower / Stalwart that is hit heavily by stream of negative news. As apple fell from its heights, I will be grabbing a bite (Mid conviction position) at around USD165-170. There may be strong short selling volume as Wall street hyperventilate over the China - US trade war, Yield curve worries and rumors of poor I phone sales (Probably factual but exaggerated to some extent). I am buying Apple conservatively as it is relatively cheap, but its moat is not considerably wide especially in the fast moving technology /hardware - software industry. Instead of valuing company as a technology stock, I value apple as a high spec consumer product company (branded goods company) with cyclical cash flow (hardware launches), smoothed by ongoing annuity inflows (growing software business). The power of its brand and design focus, sticky diehard apple fanboys, strong cash flow, good capital allocation decisions  and possibility of innovative / upgraded pr...