Comments on: Apple Added to the F Wall Street Portfolio http://www.fwallstreet.com/article/154-apple-added-to-the-f-wall-street-portfolio/ Value Investing Blog Mon, 16 May 2011 10:55:06 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: g http://www.fwallstreet.com/article/154-apple-added-to-the-f-wall-street-portfolio/#comment-2188 g Thu, 02 Oct 2008 14:16:38 +0000 http://www.fwallstreet.com/article/154-apple-added-to-the-f-wall-street-portfolio#comment-2188 I personally find AAPL to be an attractive buy right now (closed at about 100 today) and have been buying this week. While I am seeing this as a value play, I just read about Whitney Tilson (of the Value Investing Congress) being short Apple, even at its current price. It is interesting how value investors can look at a company and see it so completely differently... I personally find AAPL to be an attractive buy right now (closed at about 100 today) and have been buying this week. While I am seeing this as a value play, I just read about Whitney Tilson (of the Value Investing Congress) being short Apple, even at its current price. It is interesting how value investors can look at a company and see it so completely differently…

]]> By: Amit D. http://www.fwallstreet.com/article/154-apple-added-to-the-f-wall-street-portfolio/#comment-2175 Amit D. Mon, 29 Sep 2008 12:29:57 +0000 http://www.fwallstreet.com/article/154-apple-added-to-the-f-wall-street-portfolio#comment-2175 Hey Joe thanks for the reply! Your THE BOSS! ;) Hey Joe thanks for the reply! Your THE BOSS! ;)

]]> By: Steve http://www.fwallstreet.com/article/154-apple-added-to-the-f-wall-street-portfolio/#comment-2173 Steve Mon, 29 Sep 2008 10:35:19 +0000 http://www.fwallstreet.com/article/154-apple-added-to-the-f-wall-street-portfolio#comment-2173 Apple closed at $105 with a market cap of $93B. Their June 28th balance sheet shows $20B in cash and short term investments. $27B in total assets (cash and short term investments included). The cash to price ratio looks interesting but you never know with these markets. Apple closed at $105 with a market cap of $93B. Their June 28th balance sheet shows $20B in cash and short term investments. $27B in total assets (cash and short term investments included). The cash to price ratio looks interesting but you never know with these markets.

]]> By: David http://www.fwallstreet.com/article/154-apple-added-to-the-f-wall-street-portfolio/#comment-2166 David Fri, 26 Sep 2008 16:05:49 +0000 http://www.fwallstreet.com/article/154-apple-added-to-the-f-wall-street-portfolio#comment-2166 Joe - to follow up on Edward - What are your thoughts on DELL ? The FCF looks a little more stable than AAPL, though certainly not the explosive growth Apple has shown in the past 10 years. The two might be an interesting comparison for an article. Appreciate as always. Joe – to follow up on Edward – What are your thoughts on DELL ? The FCF looks a little more stable than AAPL, though certainly not the explosive growth Apple has shown in the past 10 years. The two might be an interesting comparison for an article.

Appreciate as always.

]]> By: edward http://www.fwallstreet.com/article/154-apple-added-to-the-f-wall-street-portfolio/#comment-2158 edward Thu, 25 Sep 2008 11:18:52 +0000 http://www.fwallstreet.com/article/154-apple-added-to-the-f-wall-street-portfolio#comment-2158 I think Dell is the better investment. IV approx 40-50b. Not a huge margin but good enough for a great company that throws off tons of cash. I think Dell is the better investment. IV approx 40-50b. Not a huge margin but good enough for a great company that throws off tons of cash.

]]> By: Mark http://www.fwallstreet.com/article/154-apple-added-to-the-f-wall-street-portfolio/#comment-2157 Mark Thu, 25 Sep 2008 10:42:30 +0000 http://www.fwallstreet.com/article/154-apple-added-to-the-f-wall-street-portfolio#comment-2157 " Finance forums are a great place to go to follow irrational joy and fear." One theory I have is that stock values are inversly proportional to the amount of posts a partiular stock receives on finacial forums. Of course Fwall Street is the exception. cheers ” Finance forums are a great place to go to follow irrational joy and fear.”

One theory I have is that stock values are inversly proportional to the amount of posts a partiular stock receives on finacial forums. Of course Fwall Street is the exception.

cheers

]]> By: JC http://www.fwallstreet.com/article/154-apple-added-to-the-f-wall-street-portfolio/#comment-2126 JC Mon, 22 Sep 2008 17:40:22 +0000 http://www.fwallstreet.com/article/154-apple-added-to-the-f-wall-street-portfolio#comment-2126 I just want to add to what Mosguy said by mentioning Munger. You can calculate, chart and manipulate the numbers all you want but try not to get too "physics envy" when making an investment. I like to first understand the business and the fundamentals of how the business works. From this you can derive how the business will operate in the future. It will also help with calculating growth rates, earnings expectations, future revenue, profit margins, etc. To me, I think it's more important that the "business" jumps out at me rather than the "value" in the business. When they both them come together, you have found a wonderful thing. Remember what Buffett said... "Time is the enemy of the poor business and the friend of the great business. " With that said, I do look for "asset" plays, where the value of business is significantly greater than the break up price or it's trading at 2-3x cash flows plus a lot of liquid assets on hand. Like Joe said, these are not "permanent" holding. An excellent example is Buffett's purchase of Sanborn Maps in late 1950s. Joe has a post on that too. I just want to add to what Mosguy said by mentioning Munger. You can calculate, chart and manipulate the numbers all you want but try not to get too “physics envy” when making an investment. I like to first understand the business and the fundamentals of how the business works. From this you can derive how the business will operate in the future. It will also help with calculating growth rates, earnings expectations, future revenue, profit margins, etc.

To me, I think it’s more important that the “business” jumps out at me rather than the “value” in the business. When they both them come together, you have found a wonderful thing. Remember what Buffett said… “Time is the enemy of the poor business and the friend of the great business. ”

With that said, I do look for “asset” plays, where the value of business is significantly greater than the break up price or it’s trading at 2-3x cash flows plus a lot of liquid assets on hand. Like Joe said, these are not “permanent” holding. An excellent example is Buffett’s purchase of Sanborn Maps in late 1950s. Joe has a post on that too.

]]> By: Joe Ponzio http://www.fwallstreet.com/article/154-apple-added-to-the-f-wall-street-portfolio/#comment-2123 Joe Ponzio Mon, 22 Sep 2008 17:16:41 +0000 http://www.fwallstreet.com/article/154-apple-added-to-the-f-wall-street-portfolio#comment-2123 <b>Amit D:</b> I look at Apple today and it appears underpriced relative to the business' value. The question is: Who will be the leader ten years from now? I don't have the confidence -- today -- to declare Apple a permanent holding because I don't have any reason to believe -- with any true confidence -- that it is virtually guaranteed to be the leader ten years from now. <b>Alex MacKinnon:</b> I don't use that -- or any "super spreadsheet" -- in my valuations. Sometimes I'll open Excel to work out the numbers; sometimes I'll figure it out in my head. That said, a big thanks to... <b>Allen:</b> Thanks for clarifying things! I couldn't have put it better myself. Those are the flaws of automatic spreadsheets. I can't stress enough -- investing is 99% art. The 1% science that goes into the spreadsheet can really mess things up if you don't look at the rationale and provide your human input and reasoning into the numbers. I don't think spreadsheets are bad...unless they lead an investor to blindly trust the past to predict the future. Spending a month running a business will give any investor a whole new appreciation for not relying on the past. Every day, we have to fight to grow revenue at our company. The fact that it grew x% last year offers very little insight into this year's growth (or shrinkage) without an in-depth understanding of the business and our management. Amit D: I look at Apple today and it appears underpriced relative to the business’ value. The question is: Who will be the leader ten years from now? I don’t have the confidence — today — to declare Apple a permanent holding because I don’t have any reason to believe — with any true confidence — that it is virtually guaranteed to be the leader ten years from now.

Alex MacKinnon: I don’t use that — or any “super spreadsheet” — in my valuations. Sometimes I’ll open Excel to work out the numbers; sometimes I’ll figure it out in my head. That said, a big thanks to…

Allen: Thanks for clarifying things! I couldn’t have put it better myself. Those are the flaws of automatic spreadsheets. I can’t stress enough — investing is 99% art. The 1% science that goes into the spreadsheet can really mess things up if you don’t look at the rationale and provide your human input and reasoning into the numbers.

I don’t think spreadsheets are bad…unless they lead an investor to blindly trust the past to predict the future. Spending a month running a business will give any investor a whole new appreciation for not relying on the past. Every day, we have to fight to grow revenue at our company. The fact that it grew x% last year offers very little insight into this year’s growth (or shrinkage) without an in-depth understanding of the business and our management.

]]> By: Allen http://www.fwallstreet.com/article/154-apple-added-to-the-f-wall-street-portfolio/#comment-2118 Allen Sun, 21 Sep 2008 18:49:56 +0000 http://www.fwallstreet.com/article/154-apple-added-to-the-f-wall-street-portfolio#comment-2118 Mosguy, Like Amit said, a discounted cash flow analysis is only one part of determining what the intrinsic value of the company is. It helps to have a spreadsheet when you are doing DCF analysis for hundreds of companies. Each company has many factors to consider, some unique to that one company, which may fall outside the scope of a spreadsheet's valuation. Mosguy,

Like Amit said, a discounted cash flow analysis is only one part of determining what the intrinsic value of the company is.

It helps to have a spreadsheet when you are doing DCF analysis for hundreds of companies.

Each company has many factors to consider, some unique to that one company, which may fall outside the scope of a spreadsheet’s valuation.

]]> By: Amit Dutt http://www.fwallstreet.com/article/154-apple-added-to-the-f-wall-street-portfolio/#comment-2116 Amit Dutt Sun, 21 Sep 2008 13:13:37 +0000 http://www.fwallstreet.com/article/154-apple-added-to-the-f-wall-street-portfolio#comment-2116 Hey mosguy, its interesting you would say that.....without properly understanding the POINT of the spreadsheet. Heck, you could do it on a piece of paper, its called Fundamental Analysis and DCF method for Intrinsic value. As much as the Assumptions are correct, the spreadsheet WILL give you VALUABLE information as to whether the stock is overpriced or undervalued. Nobody said the spreadhseet should be used in making a FINAL decision! It is the BASIS of PRELIMINARY research to weed out opportunities from the rest. Hey mosguy, its interesting you would say that…..without properly understanding the POINT of the spreadsheet.

Heck, you could do it on a piece of paper, its called Fundamental Analysis and DCF method for Intrinsic value.

As much as the Assumptions are correct, the spreadsheet WILL give you VALUABLE information as to whether the stock is overpriced or undervalued.

Nobody said the spreadhseet should be used in making a FINAL decision!

It is the BASIS of PRELIMINARY research to weed out opportunities from the rest.

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