What I Own: AAPL, GOOG, & ORCL
I get asked pretty often what stocks I like, what stocks I buy, and what stocks I own, and for the last couple years the answer has been easy: none of them. I was fortunate enough to move into cash in 2008 (the writing was was on the wall for anyone who was looking) and then I went all in during 2009 when everything was just too cheap not to. I moved back into cash in 2010 when the rally seemed overblown. My biggest winner at the time was Brunswick (NYSE:BC), which I was able to load up on between $2.75-$3 and sell off between $15-$18. Since then I've been in cash.
That changed last month when I started buying stocks again, and I figured it would be a good idea to let you guys know what I bought and at what price in the interest of full disclosure. The following are by no means recommendations, as I could be way off base with these buys. To make matters worse, I'm buying and holding - which I've always considered a sucker's bet.
Be that as it may, here's what I bought, at what price, and why:
- Apple (AAPL) - $575: There are as many reasons to buy Apple as there are blockbuster Apple products on the market, but I'll tell you mine. Never in my life (or anyone else's for that matter) has there been a company with such a staggering cash position. You put that together with their culture of innovation and the stuff they already have in their pipeline, and it was a no-brainer for me. I have a lot of faith in Tim Cook and I think Apple will eventually become the world's first trillion-dollar company. Yes, I just predicted a $1,070 stock price.
- Google (GOOG) - $575: I bought Google and Apple at the same price for a reason: I'm entertained by the foot race to $1,000. The two could not be more alike and more different at the same time. Speaking of pipelines, Google's is like something out of science fiction. If you doubt me for one minute, just look at and THIS. Incredible. Their numbers for the quarter come out today, and after an earlier downward revision they should be pretty good. But I don't care because I bought it for the long term. Just as an aside, I've always considered those who buy a stock pre-split in hopes of making money post-split to be mildly retarded. If that's your thing, however, the stock will be splitting later this year.
- Oracle (ORCL) - $29.26: Ellison is just the master. When he ran out of great ideas himself, he just went to the market and bought more. Their acquisition strategy has been aggressive and mostly spot on. I thought the Sun acquisition was a dumb move at the time - shows what I know. Oracle is the 800-pound gorilla in the Enterprise space, and I don't see that changing anytime soon. That said, I'm not looking for a huge move on ORCL. But I think the stock goes to $40 in the next couple years.
Now, I realize there is nothing particularly Earth shattering or ballsy about these bets. Some of you probably expect me to be heavy into Internet start-ups and high fliers. For what it's worth, I did have an order in to buy RENN a few weeks ago but it didn't fill. The fact is I'm not interested in trying to figure out the next big penny stock winner. I just think it's the right time to buy some blue chip tech stocks.
I also happen to think Microsoft (MSFT) could get interesting for the first time in a decade. Note that I didn't say it was a good buy here, just that it could get interesting. By announcing that they're getting into the tablet space, they risk pissing off their entire network of big-name resellers who've been working on the same thing. I've heard from my developer geek pals that Windows 8 is pretty sweet, and the company seems to be betting at least the back 40 of the ranch on the new Office 365 - a direct response to the ass whipping they've been taking from Google Apps.
Anyway, that's what I own and where I own it. If I happen to write about these companies in the future, trust me, I'm not talking my book. I just think disclosure is important when this is your "job", for lack of a better word.
You may now proceed to tell me why I'm a moron for buying these stocks.
You're a moron for buying these stocks.
[quote=SearedSalmon]You're a moron for buying these stocks. [quote]
Agree, weak thesis. Lol sounds like something a kid from Rutgers/Virgnia Tech would say.
Eddie, you were in 100% cash? Not even blue chip dividends or IG bonds?
More like 95% cash, but yeah.
Given your thesis, I'm suprised you didn't buy some Amazon. I think they are working on projects that will eventually become as popular as the Apple products, but in a much more diversified fashion.
Surprised you're not in AMZN, Jeff Bezos is a fucking genius.
suprised you feel these are legitimately 'cheap'
I'm a huge fan of Apple and despise the Android operating system but I have to say, if the Google Glasses come out anything like suggested in that video, Google wins the tech wars.
Eddie, what's your take on Samsung Electronics? Your bet on Apple indirectly indicates that they will prevail over its main competitior, Samsung Electronics. Do you think Apple can beat Samsung in the smartphone field?
Not an idiot. Solid long-term/risk averse moves. Some on WSO won't like them because they aren't flashy/trendy/"I know something you don't know" but it's your money and that money won't be going anywhere... except up. Won't get you a Maserati but won't expose you to extreme volatility and leave you in the poor house.
AAPL and GOOG aren't trendy?
What is it with the MS? Good posts camouflaged as bad ones. Any way to identify MS spammers and block them?
I just can't get myself to agree.
Some solid european stocks are currently trading at their 2009 march lows.
I find it comical that any respectable hedge or mutual fund is overweight in all these picks, most with price targets of +$750, but the unemployed Buffet jockeys on here call you stupid
portfolio opened 6/19
Winners
Bought AMZN OCT 12 225 puts for $15.50.. Long TDS @ $22.50
Long GLD @ $152 Short the Euro
Long AEP @ $40, BP @ $ 38.91 Long Nat Gas ETFs (leveraged)
Losers
FSG Long @ 22.30 SDS Long @ 15.75 NVDA Long @ $13.34 (swing and a miss)
Anyone watch these companies/industries have any opinions? TDS is a favorite of mine, looks like I got in right before a nice spike, also think the short euro/ long gold trade can be on for the rest of the year.
Tolland, whole-heartedly agree
Those Google glasses would signal the end of humanity for me. There could be no better way to destroy human interaction for good - hope they never come to fruition.
Why such large companies? Take a look in the sub-$100mm mkt cap range and you'll find a lot more interesting risk/reward situations.
Eddie, what were some of the signs in 2008 that told you that the writing was on the wall? What was the final straw that convinced you to dump all your holdings and go 100% cash?
Holy shit, GOOG is on a tear. Up $100 a share in a month. Nice.
Just because HFs are overweight AAPL/GOOG doesn't mean they're right... (they're only right about GOOG :P)
Well the same could be said about your opinions too ;)
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