Apple Inc. (AAPL) Investors Need Patience

The bull argument is that Apple Inc. (NASDAQ:AAPL) should recover, and current levels have priced in too little growth. The shares will appreciate since its valuation is attractive, based on consensus estimates, sometime over the next 1-36 months. However, this case still means a fund manager could miss out on stocks that may outperform this year for one that may outperform next year or the year after. This translates to lower bonuses, potential outflow of funds under management, and if you do this a few years in a row waiting for that big payoff, you may be job hunting.

Conclusion

For investors with patience and a longer investment horizon that are not trying to outperform on a twelve month but lifetime basis, this can create an opportunity. An investor should look for the point where the shares of Apple Inc. (NASDAQ:AAPL)  appear to have stabilized, but this is harder than it sounds. Often it makes sense to miss the first 10%-15% of a stock bouncing back to be sure you are not catching that falling knife. Buying Apple does require the belief that it may lose some share, but those losses will stabilize. This will result in 2014-2015 earnings estimates holding close to their current levels and the stock appreciating.

The article Apple Investors Need Patience originally appeared on Fool.com and is written by Mike Thiessen.

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