Trades and observations from a British contrarian stock investor

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Wednesday, January 19, 2011

Apple really is an incredible money making machine

Apple (APPL) released its fourth quarter 2010 results last night. It generated revenues of $27 billion, with profits of $ 6billion. 7.3 million Ipads were sold during the quarter. Incredibly it now has cash of $60 billion, up $10 billion on the quarter (that's $64 a share).  Even with Steve Jobs out of the day to day running of the company this is an incredible company. It was unbelievable that I picked up Apple not long after the Lehman Brothers collapse in September 2008 for not much more than $80 (today it stands at $344). Just underscores the theory of buying quality stocks when fear is maximum. With Iphone 5 and Ipad2 not far away the success will no doubt continue, but at $344 I won't be buying the stock no matter how much I love the company and its products.
Posted by Contrarian Investor UK at 6:46 AM
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2 comments:

  1. AnonymousJanuary 19, 2011 at 8:07 PM

    WIthout meaning to sound too morbid, I am accruing a cash pile so I can take a position in AAPL when the inevitable re: Jobs occurs. If rumours in Silicon Valley are anything to go by, it will be sometime in the next 6 months or so.

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  2. Contrarian Investor UKJanuary 20, 2011 at 6:31 AM

    You're right that Job's demise will probably result in a drop in Apple's price (he does not look well at all). Many investors see Apple and Jobs as the same entity.Apple will not die as Jobs moves out of the picture but when such a Leader departs the business will never be the same again despite his legacy. I personally believe he should spend his time now giving something back to society like Buffett and Gates through philanthropy rather than focusing on Iphones etc. But that's just my opinion.

    The same is also true for Berkshire Hathaway of course when Warren Buffett finally retires. What an incredible investor and person!

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