A few years ago, I had the privilege of buying Apple stock (AAPL) for a price of about $133 per share. Back then it was a real good time to buy as the price had dropped significantly due to poor iPhone sales. The stock recouped all the losses and climbed as high as $200 per share. I thought it was a brilliant move. However, I failed to capitalize on the profit and the stock began to fall again. I committed the cardinal rule of trading by buying high and selling low. A year later, the financial crisis hit and I ended up selling at around $85 per share for almost 35% loss.
The only good thing about this is that I had only invested a mere $1600. The bad thing about this is that had I not panicked and sold my shares, I would be at 100% gain today. It so happens that AAPL is at $266 per share today.
The reason I reflect back on this is that I’m CONSIDERING buying back in to Apple stock once again. Although the cost per share is sky high, if you look at the financials, the price is considered “cheap” by some analysts. With the P/E (profit to earnings ratio) at only 22, it’s is considerable undervalued at $266. But then again, I hesitate because I don’t want to make the same mistake by buying HIGH and selling LOW again. I wrote an entry previously about investing wisely and I definitely do not want to be a hypocrite by getting into AAPL to hastily. I have to do more due diligence on this stock but it’ll definitely be on my radar for my next stock trading purchase.
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