Google Inc (GOOG), Apple Inc. (AAPL): A Timeless Lesson in Portfolio Management

Apple Inc. (NASDAQ:AAPL) has fallen from the market’s good graces; the stock is down more than 36% from highs over $700 in the past year. We know Mr. Market doesn’t like uncertainty, and as it stands, there are a lot of questions Apple Inc. (NASDAQ:AAPL) must answer in regard to new products. Never mind the fact that its balance sheet is the envy of many countries, with almost $147 billion in cash and equivalents. And never mind that the company sold 31.2 million iPhones in the quarter, representing 20% growth over the same quarter last year. The 14% drop in iPad sales over the same time period only brings more questions, and until Tim Cook can provide some meaningful answers, Apple Inc. (NASDAQ:AAPL) may be stuck in neutral for a while.

Making it all make sense
So what does this all mean? Not much, really. I don’t measure my investing success based on such short time frames. But it’s also good to know what’s going on in your portfolio. I don’t subscribe to the notion that you should only check your portfolio once or twice a year. If you do that, in my opinion, you’re asking for trouble. At the very least, I think it makes sense to check your portfolio at least four times a year, if not more. Earnings season comes around every quarter, so it’s easy to remember.

Don’t get me wrong, I’m not suggesting you take action every quarter; far from it. As a matter of fact, unless there’s a crisis of epic proportions, you should just let things be. But earnings season can also offer up some genuine opportunities to add to some of your favorite positions thanks to Mr. Market’s short-term nature, so keep that in mind. Everybody has his or her own way of doing things, and the idea is for you to figure out yours. This is mine; it’s simply how I invest.

The article A Timeless Lesson in Portfolio Management originally appeared on Fool.com and is written by Jason Moser.

Jason Moser owns shares of Amazon.com. The Motley Fool recommends Amazon.com, Apple, Facebook, Ford, General Motors, Google, and United Parcel Service. The Motley Fool owns shares of Amazon.com, Apple, Facebook, Ford, and Google.

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