January 7, 2019

Lessons learnt from Apple stock collapse

Apple's stock price has dropped almost 37% from its 2018 highs. Doug Kass outlines some of the lessons investors need to learn from this event.

Lessons/conclusions from $AAPL:* Be skeptical of company buybacks* Don't automatically follow the whales (even Warren Buffett's Berkshire Hathaway)* Do your own homework* Does anyone believe the S&P 2019 EPS estimates held by the consensus? 
Remember the excitement that propelled the stock to over $215/share after ASPs gapped higher in the prior quarter? 
Remember the commentary that disregarded elasticity of demand from the $AAPL heads? 
Investors should go back to textbooks and study what happens to demand of overpriced products vis a vis competition in a maturing market and a worrisome trade dispute.

via twitter