Apple stock split - good time to invest?

[samson66]

Novice trader here. I let my money manager handle my investments in general. But I have 5 grand or so that I can invest separately on my own sitting in a credit union savings account.

Heard today about the upcoming Apple 4-for-1 split. Generally it seems like this helps lure in investors like me that are scared off by 4-digit share prices of other companies.

Want to know your thoughts on putting some money in Apple right now.

Thinking about a Roth IRA. I'm just north of 50 y/o. Do you think this is a good approach?

Thanks for your help. This is sort of "play money" that I can afford to lose if it comes to it. Not mortgage money or anything.

[Dsmith1974]

Originally Posted by samson66

Novice trader here. I let my money manager handle my investments in general. But I have 5 grand or so that I can invest separately on my own sitting in a credit union savings account.

Heard today about the upcoming Apple 4-for-1 split. Generally it seems like this helps lure in investors like me that are scared off by 4-digit share prices of other companies.

Want to know your thoughts on putting some money in Apple right now.

Thinking about a Roth IRA. I'm just north of 50 y/o. Do you think this is a good approach?

Thanks for your help. This is sort of "play money" that I can afford to lose if it comes to it. Not mortgage money or anything.

I’d say the Apple wave has past its peak.


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[beshannon]

Originally Posted by Dsmith1974

I’d say the Apple wave has past its peak.


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[JParm]

Originally Posted by samson66

Novice trader here. I let my money manager handle my investments in general. But I have 5 grand or so that I can invest separately on my own sitting in a credit union savings account.

Heard today about the upcoming Apple 4-for-1 split. Generally it seems like this helps lure in investors like me that are scared off by 4-digit share prices of other companies.

Want to know your thoughts on putting some money in Apple right now.

Thinking about a Roth IRA. I'm just north of 50 y/o. Do you think this is a good approach?

Thanks for your help. This is sort of "play money" that I can afford to lose if it comes to it. Not mortgage money or anything.

We talked a bit about this in the Talking Stocks 2.0 thread, so I would recommend you read through it to get more info - long story short, I think it's a great move and will be opening a position on weakness before the 24th.

[rmagoo57]

Originally Posted by samson66

Novice trader here. I let my money manager handle my investments in general. But I have 5 grand or so that I can invest separately on my own sitting in a credit union savings account.

Heard today about the upcoming Apple 4-for-1 split. Generally it seems like this helps lure in investors like me that are scared off by 4-digit share prices of other companies.

Want to know your thoughts on putting some money in Apple right now.

Thinking about a Roth IRA. I'm just north of 50 y/o. Do you think this is a good approach?

Thanks for your help. This is sort of "play money" that I can afford to lose if it comes to it. Not mortgage money or anything.

At 50, I would put as much as you can into a Roth and let it grow tax free! Invest it in APPL or whatever.

At 63, I'm converting some funds from my taxable traditional IRA/401k to a Roth since my current income is near zero. (I'm btwn working and collecting SS) I'll pay the tax now at a low rate and let the money grow tax free for future withdrawals. This will give me some spending and tax planning flexibility down the road.

[samson66]

Originally Posted by jpeezy14@hotmail.com

We talked a bit about this in the Talking Stocks 2.0 thread, so I would recommend you read through it to get more info - long story short, I think it's a great move and will be opening a position on weakness before the 24th.

Thank you, I will read through it. I don't understand why Amazon and Google and others don't split more often. Seems like it usually gives the stock an upward push.

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[samson66]

Originally Posted by rmagoo57

At 50, I would put as much as you can into a Roth and let it grow tax free! Invest it in APPL or whatever.



At 63, I'm converting some funds from my taxable traditional IRA/401k to a Roth since my current income is near zero. (I'm btwn working and collecting SS) I'll pay the tax now at a low rate and let the money grow tax free for future withdrawals. This will give me some spending and tax planning flexibility down the road.

Appreciate the input. I put the limit in my 401K as it stands now, so the Roth seems a good way to go if investing just a few thousand.

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[crew]

Originally Posted by Dsmith1974

I’d say the Apple wave has past its peak.


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Wall Street disagrees with you. Apple is up $39 at the moment to an all time high.

[bdex75]

Originally Posted by beshannon

I’m with you.

Look at its p/e compared to some other tech companies.

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[Pw92676]

Wish I could help but I know enough to know that I don’t know. My only suggestion would be that, depending on your fee structure, you may want to check in with your money manager to see if this is a good strategy not just in general but for you personally.

Nonetheless good luck with what you decide. I enjoy the comments here and learn a lot from them so thanks to all who contribute to financial threads like this.

[airchitect]

Depending on the success of the next iPhone (a smaller variant with all screen in the lineup) and Apple’s move to their own silicon (so long as developers have their act together, we could be in for quite a jump post split.

[Dsmith1974]

Originally Posted by crew

Wall Street disagrees with you. Apple is up $39 at the moment to an all time high.

Sure short to medium is probably a safe bet, but my concern is for longer term. Tech is fickle and Apple have been popular for a long time.


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[crew]

Originally Posted by Dsmith1974

Sure short to medium is probably a safe bet, but my concern is for longer term. Tech is fickle and Apple have been popular for a long time.


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Agree with you on that.

[CashGap]

Originally Posted by Dsmith1974

I’d say the Apple wave has past its peak.

Joking I assume?

Apple is probably 25% into their transition to a majority services company, and recurring income will continue to increase their value as they make that transition.

Their leakage (users exiting the platform) is negligible. They have the dominant gross profit share in every market in which they participate. Conversion (users leaving competitors for the platform) is accelerating.

Apple is the most successful commercial enterprise in human history. Wall Street values them like a coal mine going out of business, selling off its coal cars.

[RBradleigh]

Hmm, perhaps I need to do more homework. I was not aware a Roth could invest in a single stock (AAPL). Then again I’ve always had my Roth through a brokerage (TRowe) and I believe all available selections are their own funds

[RBradleigh]

Originally Posted by CashGap

Joking I assume?

Apple is probably 25% into their transition to a majority services company, and recurring income will continue to increase their value as they make that transition.

Their leakage (users exiting the platform) is negligible. They have the dominant gross profit share in every market in which they participate. Conversion (users leaving competitors for the platform) is accelerating.

Apple is the most successful commercial enterprise in human history. Wall Street values them like a coal mine going out of business, selling off its coal cars.

I can also interpret that AAPL didn’t go anywhere for share holders between 1980 - 2006 according to your chart. I’d be quite upset if I had to wait 26 years for a return. And then ok the growth is incredible from 06’ to today

[CashGap]

Originally Posted by RBradleigh

I can also interpret that AAPL didn’t go anywhere for share holders between 1980 - 2006 according to your chart. I’d be quite upset if I had to wait 26 years for a return. And then ok the growth is incredible from 06’ to today

Just... seriously? No.

Here's 1980 to 2006. What should have been obvious is that it LOOKS like a straight line only because the following periods were so amazing.

Perhaps I was misunderstanding the OPs question. I thought he was asking if he should get in today. You seem to believe he was asking if he should have gotten in back in 1980.

Coincidentally, "Yes" is a stronger answer to the second question than to the first.

[RBradleigh]

Originally Posted by CashGap

Just... seriously? No.

Here's 1980 to 2006. What should have been obvious is that it LOOKS like a straight line only because the following periods were so amazing.

Perhaps I was misunderstanding the OPs question. I thought he was asking if he should get in today. You seem to believe he was asking if he should have gotten in back in 1980.

Coincidentally, "Yes" is a stronger answer to the second question than to the first.

First, I am thankful to own some APL stock and look fwd to the split, it means I’ll own more shares of a great company (yes the price is /4 as well so no “real” added value). 2nd, the first chart you posted appears to have 0 growth between 80-06 and then it starts to takeoff. Are my eyes deceiving me? Assuming 0 splits and no dividend during that period means there was 0 gain in value during that timeframe. All I’m saying. Please correct me if I’m misinterpreting the chart in that specific time interval.

[jaisonline]

Originally Posted by RBradleigh

First, I am thankful to own some APL stock and look fwd to the split, it means I’ll own more shares of a great company (yes the price is /4 as well so no “real” added value). 2nd, the first chart you posted appears to have 0 growth between 80-06 and then it starts to takeoff. Are my eyes deceiving me? Assuming 0 splits and no dividend during that period means there was 0 gain in value during that timeframe. All I’m saying. Please correct me if I’m misinterpreting the chart in that specific time interval.

Split adjusted chart.

[samson66]

Feel like i may have missed the boat on this one with the way it has shot up the last couple days. Not sure if I should bother buying shares at this point or not? Had to set up my account this past Friday and get the money set up. Haven't bought anything yet. Should I still go thru with it you think?

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[Dsmith1974]

Today’s Apple stock is best watched IMO.


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[chinaski]

I bought an additional 25 shares on the news that the stock was splitting, which basically doubled my position. It's a Blue Chip stock, I'm fairly confident in it.

[Wcdhtwn]

I started buying Apple in the 90’s and low 100’s after the 7 for 1 split in ‘14. It’s been a good decision, to understate it. Sometimes I think about cashing some out, but it keeps going. Post split more people will think they can afford it so that will increase buying, but the fundamentals of the stock don’t change because of the split. If I didn’t own it now, and the amount I own, I’d buy it... it has become a pretty big (maybe too big) percentage of my overall portfolio. It’s a great company which this last earnings result in this economic environment clearly shows.

[CashGap]

Originally Posted by RBradleigh

First, I am thankful to own some APL stock and look fwd to the split, it means I’ll own more shares of a great company (yes the price is /4 as well so no “real” added value). 2nd, the first chart you posted appears to have 0 growth between 80-06 and then it starts to takeoff. Are my eyes deceiving me? Assuming 0 splits and no dividend during that period means there was 0 gain in value during that timeframe. All I’m saying. Please correct me if I’m misinterpreting the chart in that specific time interval.

Look at the second chart of just the period you mention.

In the first chart, the scale required to capture the unprecedented growth in recent years makes the performance 80-06 appear to be a flat line. Not so, once broken out and scaled.

[CashGap]

Originally Posted by jaisonline

Split adjusted chart.

That's tougher to follow though, the typical chart just shows the value as if all splits go back to the beginning of time.

[beshannon]

It is always a good time to invest in AAPL

We discuss this in-depth over in the Talking Stock thread.

https://seekingalpha.com/article/436...nd-stock-split

Simply put, over 1/3 of all iPhones are over 3 years old. The service revenue on an annual basis is larger than many countries GDP.

Yes I own AAPL and will be buying more

[bdex75]

Originally Posted by RBradleigh

Hmm, perhaps I need to do more homework. I was not aware a Roth could invest in a single stock (AAPL). Then again I’ve always had my Roth through a brokerage (TRowe) and I believe all available selections are their own funds

You can invest your Roth in whatever you want. Your broker may advise you that a single stock is a highly concentrated position and is very risky, and he/she would be correct.

But they can put into individual securities if you wish. If not then find a new broker. May be that their platform charges (potentially a lot) for trades that you can get for free with an online discount brokerage so they avoid that conversation.

I don’t do a lot of individual securities in client accounts without a bunch of money in them as it is difficult to get good diversification. We use a lot of UIT’s that are tech heavy in smaller accounts right now. Also my platform is one that charges too much for trades so I send people to E*TRADE and scotttrade.




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[ppbskis]

The best advice I’ve read is to not try to time the market, jump in and buy!
Also don’t try to catch falling knives.
Im only in the past three years and thought i joined the party too late. I bought Apple and amazon and am so glad i did.
If your only 50 you still have some time on your side. I would definitely recommend getting the apple shares.
Best wishes .


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[samson66]

Originally Posted by bdex75

You can invest your Roth in whatever you want. Your broker may advise you that a single stock is a highly concentrated position and is very risky, and he/she would be correct.

But they can put into individual securities if you wish. If not then find a new broker. May be that their platform charges (potentially a lot) for trades that you can get for free with an online discount brokerage so they avoid that conversation.

I don’t do a lot of individual securities in client accounts without a bunch of money in them as it is difficult to get good diversification. We use a lot of UIT’s that are tech heavy in smaller accounts right now. Also my platform is one that charges too much for trades so I send people to E*TRADE and scotttrade

Thanks for your reply. I have my big retirement accounts in a well diversified IRA and 401K, so this particular Roth would be more like "play money" that I can afford to lose. I'm probably just going to set up an e*trade account.

[samson66]

Originally Posted by ppbskis

The best advice I’ve read is to not try to time the market, jump in and buy!
Also don’t try to catch falling knives.
Im only in the past three years and thought i joined the party too late. I bought Apple and amazon and am so glad i did.
If your only 50 you still have some time on your side. I would definitely recommend getting the apple shares.
Best wishes .

Good points. Any thoughts on the two you mentioned plus the other obvious choices like Google, Microsoft, etc.?

Thinking I may do half Apple and half in either Amazon or the others.