On 2014 Nov 25, at 5:15 AM, my son Mark wrote:
• Apple is at 118
• Should you sell some of that?
No, Mark, absolutely not. You can if you want to. Me, I am not going to. I don’t trade AAPL, I’m “buy-and-hold” (and my strong recommendation is that you should be, too.)
• It is way ahead of where it was back at 707 before the split.
Isn’t that nice? Isn’t that exactly the kind of stock you want to own? Not one that is below what it was some time ago?
This is not rocket science, Mark!
Mark, read your comments in sequence. Ask yourself what you were saying. Well, let me re-phrase what you were saying (it seems to me):
“Apple is at 118. I’m thinking of selling, because It is higher than it was before.”
Well, that is NOT a reason for selling.
If you ARE thinking of selling, write down the REASON that you are selling, and the REASON that you are buying what you buy with the proceeds.
Example: “I think China’s economy is slipping (it is) and sales of iPhones will be somewhat lower than current projections (which are likely producing the big recent rise), and people will panic and they will sell, SO I am going to sell before they do, and so I’ll avoid the drop. And I can use the proceeds to buy —–, which I strongly suspect is going to go UP, because ————–.”
That would be a valid REASON for selling. If I were into the stock market, that’s what I might do myself. But I am not into the stock market. I would not know what to buy with the proceeds. And I would not know when to buy back into AAPL after it sagged. (That is exactly what would have happened over the last couple of years with the big sag that did occur in AAPL). Instead, I just hold onto AAPL, believing that five years from now (or sooner) it will double again.
I could be wrong.
But for me, that is the only non-stupid way to proceed.