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Sample analysis of Apple.

October 30, 2010

You all know from past postings that as a psychologist I am sold on AAPL as anyone would be sold on an amazing rare relationship. I explain how to create super-relationships in my books. Anybody can do it if they are willing to reinvent themselves by giving up behaviors that don’t work. The key to financial success is to focus 100% on the task at hand. Here is a sample analysis of Apple that anyone who changes will be able do in the future:

Professional analysts are highly trained individuals who are experts in estimating stock movement. As a group they are highly reliable, as individuals they are not. As a group they estimate Apple shares going up to $400 in the next few quarters, as individuals some are “hot” to say that Apple may even surpass $500 per share! The thing for you as a middle-class investor to know is that Apple’s growth has been steady and phenomenal for quite a while, no stampedes on the stocks and no wholesale of the stocks, just steady growth that the law of continuity predicts to continue. AAPL is a very steady company in a not-so-steady sector and industry. The number of professional analysts that think that Apple may reach $500 is – growing, thus reliability of prediction is increasing! Why are they so optimistic? They are able to put aside personal biases and focus on the fact that their estimates of share price always miss the mark by 10% to 80% per quarter! It is hard to keep an amazing relationship with something that makes you wrong that much! These analysts have a gift” that most ordinary people don’t have: They don’t give up on a relationship that makes them consistently wrong. They change their attitude. They see that Apple beats its competitors in an industry that is growing and they adjust their personal biases against the company no matter what they are!

But what about the future of Apple? Well, here you have to be more careful. Barring unforseen events that will affect the market as a whole such as a natural disaster or a terrorism act in the US, Apple will continue to thrive (I did not include Steven Jobs health in the equation). Apple may drop $100 by no fault of its own, which will create an opportunity to buy by “brave” investors. As for myself, I don’t gamble. I have enough apples to make an apple pie. Enjoy!

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3 Comments leave one →
  1. October 30, 2010 6:31 pm

    From a toasty winter squash with apples soup to festive Gazpachos, sample the seasons with the fresh ingredients used in these savory soup recipes. Cathy Humor

    • November 2, 2010 9:10 am

      Dear Cathy, I don’t mind if you advertise your delicious “toasty winter squash with APPLES” food dish on my investing blog as long as you comment on my posting, “Sample analysis of Apple shares.” My Apples come from the money tree, yours are more original apples, but please acknowledge my blog.

  2. November 2, 2010 11:18 pm

    When you find a signal that you would like to watch or trade, simply select it to be displayed in your portfolio. Technical Books

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