Why I’m Doubling Down on Apple Inc. (AAPL)

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Foolish conclusion
If you believe that bargains do arise in the stock market, Apple stock today fits the bill. The company may not be as far ahead of competitors as it was two or three years ago, but it still has a unique brand name that provides an enviable moat. Moreover, despite a margin “correction,” the company is still on pace to earn net income of approximately $37 billion this year.

Yet for all these advantages, Apple stock can be bought for less than seven times earnings (if you exclude the company’s cash). Could something go wrong for Apple investors? It’s always possible; the technology landscape can change rapidly. However, Apple provides a generous margin of safety for value investors — enough to make me feel comfortable upping my holdings.

The article Why I’m Doubling Down on Apple Stock originally appeared on Fool.com.

Fool contributor Adam Levine-Weinberg owns shares of Apple and Hewlett-Packard, and has long Jan 2015 $390 Calls on Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


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