There is another good article on Apple at The Street.com titled “Apple: Why you should buy the hype“. We found this article interesting as it discusses two aspects of investing that are, not necessarily polar opposites, but could lead to very different decisions. One is what we call as “investment psychology” or investment strategy and the other is raw data. A quick search within this portal will tell you that we have not been shy in pointing out Apple as a great investment in the last several months.
Suffice it to say that we remain long on Apple and believe that the stock will deliver good returns for the next 3 years at the very least. It is one stock that we recommend investors hold on for the long haul. The math is quite simple. Apple continues to innovate and execute in one of the most consistent manner. If one looks at the raw numbers, the price earnings multiple is currently in line with other similar companies. Note that historically Apple has always commanded a slight premium on the P/E multiple. But let us assume that the P/E will remain the same, the EPS (Earnings Per Share) is expected to grow almost at around 50% year after year. That itself translates into a stock price growth of 50% per year. With that potential, we still consider it as one of the best investments out there.
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