- With Berkshire Hathaway’s decision to significantly cut AAPL position, many voices emerged stating that Apple is a ‘sell’.
- Apple ticks all the boxes regarding cash-flow-generating potential, shareholder rewards, sustainability and quality of the business model, as well as valuation.
- Investors who claim AAPL is overvalued based on its stock price increases seem to miss two crucial factors: share repurchases and the multiple-based approach to assess the valuation.
I’ve held on to Apple (NASDAQ:AAPL) for quite some time, and the Company has served me and my portfolio well. With recent noise around Apple and Berkshire Hathaway’s (BRK.A) (BRK.B) decision to significantly cut its AAPL position, many voices emerged stating that AAPL is a sell. When writing this article, I can see four recent, consecutive analyses of Apple declaring either a ‘sell’ or a ‘strong sell’ rating, which is uncanny for me for such a quality business.
I am a long-term-oriented investor with a buy-and-hold approach who concentrates on cash-generating businesses that offer attractive shareholder rewards – preferably paying dividends. Apple fits really well into my portfolio, with a strong ‘brand’ factor accompanying its technology-driven business and cash-flow machine characteristic.
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