Apple Inc (AAPL)

[Altaire4_2dot0]

KCMW, My Investment Strategy

Correct me if I'm wrong, but I believe the decision to buy, hold, or sell should be a forward looking one. One should not let his/her purchase price determine what they think a stock will do in the future, right?

Investment Basic 101 is Buy low and Sell high. I've bought and sold Apple over the last Two years at least Six Times making dollars on every sale. I've used the profits to buy into other stocks which have the potential of 200 % - 400 % return over the next decade. Most of these other investments are or near profitability.

If I think a stock is likely to fall 10%, what difference does it make if I bought it at 65, or at 25? It is still a 10% loss from my current worth. In either case, sell. Tax concerns could affect these decisions, but I generally do not let the tax tail wag the dog.

I believe it depends on if you take a long or short term view of investing. Taking profits from one stock to buy into another stock at a low price with the potential for a much more significant rate of return is the strategy I'm pursueing. If I had a short term view and wanted instant gratification I'd sell now.

But, I never invest dollars that I might need for near term obligations so the money I invest is available to grow a long term nest egg. My investments over the last Two years have averaged a 12.5% annual return ... better than any bank I'm aware of.

Whatever strategy you take it still comes down to buying low and selling high.

BR, Altaire4