My father was a kind and wise man. He didn’t make a large fortune in his life, but he left a legacy of goodwill, plain talk, and common sense. As an early investor in Apple, Microsoft, and a few other tech giant he kept his strategy simple.
Follow the money. Buy low, sell high. Or, perhaps more appropriately, follow the money trail of those who know how to make money. The past few months have been an interesting time for investors; especially those who follow AAPL and Apple and those who follow The Golden Rule.
Those with the gold get to rule.
For months we witnessed a daily litany of critical noise on all things Apple– but especially how terrible iPhone X was doing in the marketplace. As it turned out, there wasn’t much facts in those headlines dissing iPhone X’s fortunes. Meanwhile, Apple gobbled up tens of billions of AAPL stock as the market reacted negatively to the negative news.
Guess what? Other smart investors did the same thing. Not only did Apple buy back more than $20-billion of its own stock at a discount, Warren Buffett’s Berkshire Hathaway bought another 75-million shares (I figured more than $12-billion at market depressed discount prices, and he already owned more than $165-billion in Apple stock). You’d think all that negative iPhone X news depressed the market and caused a sale on AAPL, right?
Well, that’s what happened. Bad reports about iPhone X spooked investors– except the smart ones– Apple’s stock dropped appropriately, and while it did, the smart investors bought even more AAPL.
My father said it right. Follow the money. Buy low, sell high. That’s what Apple did. That’s what Warren Buffett did. One report said Buffett’s Berkshire Hathaway holdings alone are worth about $700-million in dividends this year.
That’s a money trail worth following, amirite?
Find out who makes money in stocks. Then find out what stocks they invest in. Then invest in those stocks. Then wait. That seems to work. The rich get richer.
Now, my cynical side wonders how much of all that negative iPhone X news that drove the market and AAPL into the ditch was created just so the smart people could buy low and later sell high.
Either way, it’s still a money trail to follow.