Too Much Apple [AAPL] Stock

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Duffydog1
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Too Much Apple [AAPL] Stock

Post by Duffydog1 » Wed Oct 17, 2018 2:24 pm

My portfolio consistes of approximately 22% of Apple stock. Is this the point to sell some of it? Is there a general rule of thumb for a maximum holding for a individual company?

Duffydog1
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Re: Too Much APPL Stock

Post by Duffydog1 » Wed Oct 17, 2018 2:26 pm

Sorry I meant 12%.

Darth Xanadu
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Re: Too Much APPL Stock

Post by Darth Xanadu » Wed Oct 17, 2018 2:28 pm

Duffydog1 wrote:
Wed Oct 17, 2018 2:24 pm
My portfolio consistes of approximately 22% of Appl stock. Is this the point to sell some of it? Is there a general rule of thumb for a maximum holding for a individual company?
Not really, it's a very personal decision. However, the title of your post leads me to believe you think it's time to sell some. Personally, I would sell 25%-50% depending on tax consequences, and the overall absolute $ amount we are talking about (i.e. if your total portfolio is only $40k, I wouldn't sweat it much).
"A courageous teacher, failure is."

MichCPA
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Re: Too Much APPL Stock

Post by MichCPA » Wed Oct 17, 2018 2:31 pm

Do you mean AAPL (Apple)?

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vineviz
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Re: Too Much APPL Stock

Post by vineviz » Wed Oct 17, 2018 2:32 pm

Duffydog1 wrote:
Wed Oct 17, 2018 2:24 pm
My portfolio consistes of approximately 22% of Appl stock. Is this the point to sell some of it? Is there a general rule of thumb for a maximum holding for a individual company?
The rule of thumb I use is that no stock should ever be more than 10% of your investable assets, and no more than 5% if you work for that company.
"Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves." ~~ Peter Lynch

spreadsheetguy
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Re: Too Much APPL Stock

Post by spreadsheetguy » Wed Oct 17, 2018 2:37 pm

maybe a congrats is in order since you've probably done pretty well on that.
I have the same issue and am trying to slowly sell off some without incurring too much capital gains tax (i.e. trying to stay in the 0% LTCG bracket, but that means I can't sell very much each year).

BogleMelon
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Re: Too Much APPL Stock

Post by BogleMelon » Wed Oct 17, 2018 3:01 pm

Would you buy the same amount of AAPL stocks today if you didn't have it?
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

retiredjg
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Re: Too Much APPL Stock

Post by retiredjg » Wed Oct 17, 2018 3:09 pm

I think 12% might be a little too much but it is not a disaster waiting to happen this week. If you have other individual stocks, you might need to trim them all.

I think 5% to 10% is more than enough. It is hard to imagine Apple ever failing, but Sears failed this week and that would have been completely unimaginable in the past. For those who did not grow up with Sears, it would be like Amazon or Apple or Google going bankrupt. Can't imagine it can you? Well, that's how the older crowd is thinking about Sears.

On the other hand, if you are wealthy enough that a 12% loss would not wobble your well being very much...maybe 12% is fine.

Ron Scott
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Re: Too Much APPL Stock

Post by Ron Scott » Wed Oct 17, 2018 4:06 pm

APPL comprises about 3.8% of the S&P500, so your not in bad company...
Retirement is a game best played by those prepared for more volatility in the future than has been seen in the past. The solution is not to predict investment losses but to prepare for them.

mortfree
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Re: Too Much APPL Stock

Post by mortfree » Wed Oct 17, 2018 7:09 pm

No such thing as too much AAPL

J295
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Re: Too Much APPL Stock

Post by J295 » Wed Oct 17, 2018 7:34 pm

Depends on facts and circumstances, and goals and willingness and ability to to take risk. May be too much for some and not enough for others.

Two of our children are in high tech with publicly traded companies and each receives stock options/grants. One is married with a working spouse and children, the other single. They each approach their company stock retention differently. My spouse and I own no individual stock in either company, and as early retirees are rather conservatively invested. So, that is why I say, it depends.

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Watty
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Re: Too Much APPL Stock

Post by Watty » Wed Oct 17, 2018 7:46 pm

Duffydog1 wrote:
Wed Oct 17, 2018 2:26 pm
Sorry I meant 12%.
One thing to consider is that you likely also own mutual funds that also own apple stock so you may have even more exposure to Apple than that. For example an S&P 500 fund is about 4% Apple stock.

If this is in a retirement account then it can be sold without tax consequences so you should sell a lot of it.

If you support a charity you can give them Apple stock instead of money.

Delaying selling it may not avoid paying capital gains taxes it might only defer them until later. That is not really a tax savings.
mortfree wrote:
Wed Oct 17, 2018 7:09 pm
No such thing as too much AAPL
When people say things like this it is hard to imagine how the stock could ever look better.

As a contrary indicator that could favor selling the stock.

mortfree
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Re: Too Much APPL Stock

Post by mortfree » Wed Oct 17, 2018 7:52 pm

Watty wrote:
Wed Oct 17, 2018 7:46 pm

mortfree wrote:
Wed Oct 17, 2018 7:09 pm
No such thing as too much AAPL
When people say things like this it is hard to imagine how the stock could ever look better.

As a contrary indicator that could favor selling the stock.
Standard answer on here for when anyone says they own a single stock - the BH chorus says “sell it!”

Don’t think I am capable of being any kind of indicator. Just a fan and own quite a bit of AAPL.

Duffydog1
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Re: Too Much APPL Stock

Post by Duffydog1 » Thu Oct 18, 2018 8:19 am

Thanks. I have large portfolio and only a limited amount of stock and no mutual funds. I am 78 and have moved 75% into cash and now slowly into CDs and 1 year treasuries. Perhaps at maybe I don't need the risk of stock so selling some of Apple may be prudent. It is held in taxable and nontaxable accounts so i have to be careful about the taxable accounts.

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Watty
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Re: Too Much APPL Stock

Post by Watty » Thu Oct 18, 2018 8:29 am

Duffydog1 wrote:
Thu Oct 18, 2018 8:19 am
It is held in taxable and nontaxable accounts so i have to be careful about the taxable accounts.
Selling it in the nontaxable accounts is an easy choice. Putting the money from the sale into something like a total stock market index fund could make sense.

barnaclebob
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Re: Too Much APPL Stock

Post by barnaclebob » Thu Oct 18, 2018 9:09 am

mortfree wrote:
Wed Oct 17, 2018 7:09 pm
No such thing as too much AAPL
For how long though? I'm sure the same was said about GE or Sears at some point.

retiredjg
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Re: Too Much APPL Stock

Post by retiredjg » Thu Oct 18, 2018 9:53 am

Watty wrote:
Thu Oct 18, 2018 8:29 am
Duffydog1 wrote:
Thu Oct 18, 2018 8:19 am
It is held in taxable and nontaxable accounts so i have to be careful about the taxable accounts.
Selling it in the nontaxable accounts is an easy choice. Putting the money from the sale into something like a total stock market index fund could make sense.
This makes sense to me too.

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CyclingDuo
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Re: Too Much APPL Stock

Post by CyclingDuo » Thu Oct 18, 2018 10:11 am

barnaclebob wrote:
Thu Oct 18, 2018 9:09 am
mortfree wrote:
Wed Oct 17, 2018 7:09 pm
No such thing as too much AAPL
For how long though? I'm sure the same was said about GE or Sears at some point.
Probably as long as we live in a connected world and the company mentioned sells various devices to "connect" as well as services to boot (iCloud, iTunes, ApplePay, AppleCare).

Devices actually are the lowest cost of our connectivity when compared to the recurring monthly access charges one pays, and when you add up all the other services as well.

http://fortune.com/2015/08/07/connected-device-costs/

The device itself may end up costing you only a net of $9 - $12 per month on the low end, and up towards $30 per month on the high end if you keep the device for 3-4 years. Compare that to the recurring monthly access charges that are pointed out in the Fortune article where the average connected device habit we find ourselves in ends up costing an average of $3800 per year. Total up your connectivity costs: access charges, all of your devices, services and break it down into an annual as well as monthly net cost to see what portion of your cash flow in the household is going towards being connected.

The "pie" includes Apple, Samsung, Google, Verizon, AT&T, Sprint/T-Mobile, Netflix, Dropbox, Adobe, Skype, Microsoft, Intel, Qualcomm, Amazon and of course many, many others.
"Everywhere is within walking distance if you have the time." ~ Steven Wright

retiredjg
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Re: Too Much APPL Stock

Post by retiredjg » Thu Oct 18, 2018 10:28 am

CyclingDuo wrote:
Thu Oct 18, 2018 10:11 am
barnaclebob wrote:
Thu Oct 18, 2018 9:09 am
mortfree wrote:
Wed Oct 17, 2018 7:09 pm
No such thing as too much AAPL
For how long though? I'm sure the same was said about GE or Sears at some point.
Probably as long as we live in a connected world and the company mentioned sells various devices to "connect" as well as services to boot (iCloud, iTunes, ApplePay, AppleCare).
That seems logical.

But consider that Sears was one of the first (or maybe the first) mail order companies. There is more mail order shopping now than ever before, but that didn't protect Sears from going under.

Sometimes things don't work out in a logical or expected way.

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CyclingDuo
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Re: Too Much APPL Stock

Post by CyclingDuo » Thu Oct 18, 2018 12:18 pm

retiredjg wrote:
Thu Oct 18, 2018 10:28 am
CyclingDuo wrote:
Thu Oct 18, 2018 10:11 am
barnaclebob wrote:
Thu Oct 18, 2018 9:09 am
mortfree wrote:
Wed Oct 17, 2018 7:09 pm
No such thing as too much AAPL
For how long though? I'm sure the same was said about GE or Sears at some point.
Probably as long as we live in a connected world and the company mentioned sells various devices to "connect" as well as services to boot (iCloud, iTunes, ApplePay, AppleCare).
That seems logical.

But consider that Sears was one of the first (or maybe the first) mail order companies. There is more mail order shopping now than ever before, but that didn't protect Sears from going under.

Sometimes things don't work out in a logical or expected way.
Understand the premise. However....

The death knell for Sears was at least a couple of decades ago. Apple is a long way from any death knell at the moment.
"Everywhere is within walking distance if you have the time." ~ Steven Wright

retiredjg
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Re: Too Much APPL Stock

Post by retiredjg » Fri Oct 19, 2018 4:11 pm

CyclingDuo wrote:
Thu Oct 18, 2018 12:18 pm
The death knell for Sears was at least a couple of decades ago. Apple is a long way from any death knell at the moment.
I agree, but would people who owned a bucket full of Sears have known when to sell? I suspect not. People who sold probably sold at a loss and people who held on now have penny stock.

I think Apple stock is and will be a great and wonderful thing....until it is not. Since it is hard to know when to get out, I can't suggest holding a great deal of it or any other individual stock. The fact that none of us can see an end to Apple does not make it a great stock to own a lot of.

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serbeer
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Re: Too Much APPL Stock

Post by serbeer » Fri Oct 19, 2018 4:21 pm

I no longer own individual companies stock at all, but even when I did I made sure to keep no more than 5% of my portfolio in any single company, and I suggest you do the same.

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obafgkm
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Re: Too Much AAPL Stock

Post by obafgkm » Fri Oct 19, 2018 4:35 pm

What happens when you speak in TICKER language

Please note that there is no APPL symbol. If there were, and the intended meaning was "Apple", it would have been pretty easy to hit another keystroke and just written, you know, "Apple". Then there would have been no confusion at all.

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munemaker
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Re: Too Much APPL Stock

Post by munemaker » Fri Oct 19, 2018 6:13 pm

Duffydog1 wrote:
Wed Oct 17, 2018 2:24 pm
My portfolio consistes of approximately 22% of Appl stock. Is this the point to sell some of it? Is there a general rule of thumb for a maximum holding for a individual company?
Long ago when I used to own individual stocks, I used 5% maximum. The reasoning behind this was 20 stocks spread over different industries would give you decent diversification.

TravelforFun
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Re: Too Much APPL Stock

Post by TravelforFun » Fri Oct 19, 2018 6:18 pm

My AMZN has exceeded my 'too much individual stock' threshold for quite a while now but I'm not selling.

TravelforFun

TravelforFun
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Re: Too Much APPL Stock

Post by TravelforFun » Fri Oct 19, 2018 6:18 pm

My AMZN has exceeded my 'too much of one individual stock' threshold for quite a while now but I'm not selling.

TravelforFun

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CyclingDuo
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Re: Too Much APPL Stock

Post by CyclingDuo » Sun Oct 21, 2018 7:44 am

retiredjg wrote:
Fri Oct 19, 2018 4:11 pm
CyclingDuo wrote:
Thu Oct 18, 2018 12:18 pm
The death knell for Sears was at least a couple of decades ago. Apple is a long way from any death knell at the moment.
I agree, but would people who owned a bucket full of Sears have known when to sell? I suspect not. People who sold probably sold at a loss and people who held on now have penny stock.

I think Apple stock is and will be a great and wonderful thing....until it is not. Since it is hard to know when to get out, I can't suggest holding a great deal of it or any other individual stock. The fact that none of us can see an end to Apple does not make it a great stock to own a lot of.
Sears was hit by the brunt of an epic move in capitalism of companies that cropped up and allowed middle and lower income consumers to purchase products that improved their lifestyle at lower price points. Walmart, Home Depot, IKEA, Microsoft, Gap, Target, Costco, Bed Bath & Beyond, Best Buy, Lowes, etc... as well as many more were all part of that change in trend for consumerism. A change in import/export laws for appliances also hit Sears. I remember reading a bevy of articles on the trend changes in the late 80's and through the 90's. It was certainly a trend that was worth following with regard to Sears.

My grandfather probably is responsible for planting a seed for me early in my life when a new Walmart was built near his home in southern Illinois in the 70's. He immediately took to the store for weekly trips and I remember his comment about Walmart to my parents when we were visiting for a vacation and he drove all of us in his car to accompany him on his weekly visit to Walmart. It was the first Walmart we had seen at the time, and after our shopping experience my Grandfather announced: "Well, there goes Sears & Roebuck!" It wasn't until 1989 that Walmart surpassed Sears in revenue, but I guess gramps had it figured out back in the 70's. :mrgreen:

An interesting graphic with regard to the top 25 most profitable companies and how much they earn per second:

Image
https://www.titlemax.com/discovery-cent ... companies/

I fully expect that 20-25 years from now, the top 25 profitable companies that appear on a similar list will not have all of the same members as it currently does. Time will tell if Apple is able to remain competitive and satisfy consumerism through their products and services when compared to future trends that will appear on the horizon. Worth watching for sure.

No doubt that the OP needs to consider portfolio construction in terms of diversity and develop an IPS that includes what percentage of their portfolio could be invested in one company. 5-10% seems to be a suggested guideline as being a maximum by some. If we use that guideline, it certainly points out that the current 12% the OP has might start to raise a red flag depending on the remainder of their overall portfolio construction.
"Everywhere is within walking distance if you have the time." ~ Steven Wright

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BL
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Re: Too Much APPL Stock

Post by BL » Sun Oct 21, 2018 8:05 am

retiredjg wrote:
Thu Oct 18, 2018 9:53 am
Watty wrote:
Thu Oct 18, 2018 8:29 am
Duffydog1 wrote:
Thu Oct 18, 2018 8:19 am
It is held in taxable and nontaxable accounts so i have to be careful about the taxable accounts.
Selling it in the nontaxable accounts is an easy choice. Putting the money from the sale into something like a total stock market index fund could make sense.
This makes sense to me too.
+2
In taxable it depends on Capital Gains (CGs) and your tax bracket.
If you give some to a charity that can accept it, that would work to avoid CGs (or to a Fidelity, etc., donor-advised fund).

TravelforFun
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Re: Too Much APPL Stock

Post by TravelforFun » Sun Oct 21, 2018 10:23 pm

CyclingDuo wrote:
Sun Oct 21, 2018 7:44 am
retiredjg wrote:
Fri Oct 19, 2018 4:11 pm
CyclingDuo wrote:
Thu Oct 18, 2018 12:18 pm
The death knell for Sears was at least a couple of decades ago. Apple is a long way from any death knell at the moment.
I agree, but would people who owned a bucket full of Sears have known when to sell? I suspect not. People who sold probably sold at a loss and people who held on now have penny stock.

I think Apple stock is and will be a great and wonderful thing....until it is not. Since it is hard to know when to get out, I can't suggest holding a great deal of it or any other individual stock. The fact that none of us can see an end to Apple does not make it a great stock to own a lot of.
Sears was hit by the brunt of an epic move in capitalism of companies that cropped up and allowed middle and lower income consumers to purchase products that improved their lifestyle at lower price points. Walmart, Home Depot, IKEA, Microsoft, Gap, Target, Costco, Bed Bath & Beyond, Best Buy, Lowes, etc... as well as many more were all part of that change in trend for consumerism. A change in import/export laws for appliances also hit Sears. I remember reading a bevy of articles on the trend changes in the late 80's and through the 90's. It was certainly a trend that was worth following with regard to Sears.

My grandfather probably is responsible for planting a seed for me early in my life when a new Walmart was built near his home in southern Illinois in the 70's. He immediately took to the store for weekly trips and I remember his comment about Walmart to my parents when we were visiting for a vacation and he drove all of us in his car to accompany him on his weekly visit to Walmart. It was the first Walmart we had seen at the time, and after our shopping experience my Grandfather announced: "Well, there goes Sears & Roebuck!" It wasn't until 1989 that Walmart surpassed Sears in revenue, but I guess gramps had it figured out back in the 70's. :mrgreen:

An interesting graphic with regard to the top 25 most profitable companies and how much they earn per second:

Image
https://www.titlemax.com/discovery-cent ... companies/

I fully expect that 20-25 years from now, the top 25 profitable companies that appear on a similar list will not have all of the same members as it currently does. Time will tell if Apple is able to remain competitive and satisfy consumerism through their products and services when compared to future trends that will appear on the horizon. Worth watching for sure.

No doubt that the OP needs to consider portfolio construction in terms of diversity and develop an IPS that includes what percentage of their portfolio could be invested in one company. 5-10% seems to be a suggested guideline as being a maximum by some. If we use that guideline, it certainly points out that the current 12% the OP has might start to raise a red flag depending on the remainder of their overall portfolio construction.
Not legit ... Amazon not on list.

TravelforFun

bhsince87
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Re: Too Much APPL Stock

Post by bhsince87 » Sun Oct 21, 2018 10:50 pm

TravelforFun wrote:
Sun Oct 21, 2018 10:23 pm
CyclingDuo wrote:
Sun Oct 21, 2018 7:44 am
retiredjg wrote:
Fri Oct 19, 2018 4:11 pm
CyclingDuo wrote:
Thu Oct 18, 2018 12:18 pm
The death knell for Sears was at least a couple of decades ago. Apple is a long way from any death knell at the moment.
I agree, but would people who owned a bucket full of Sears have known when to sell? I suspect not. People who sold probably sold at a loss and people who held on now have penny stock.

I think Apple stock is and will be a great and wonderful thing....until it is not. Since it is hard to know when to get out, I can't suggest holding a great deal of it or any other individual stock. The fact that none of us can see an end to Apple does not make it a great stock to own a lot of.
Sears was hit by the brunt of an epic move in capitalism of companies that cropped up and allowed middle and lower income consumers to purchase products that improved their lifestyle at lower price points. Walmart, Home Depot, IKEA, Microsoft, Gap, Target, Costco, Bed Bath & Beyond, Best Buy, Lowes, etc... as well as many more were all part of that change in trend for consumerism. A change in import/export laws for appliances also hit Sears. I remember reading a bevy of articles on the trend changes in the late 80's and through the 90's. It was certainly a trend that was worth following with regard to Sears.

My grandfather probably is responsible for planting a seed for me early in my life when a new Walmart was built near his home in southern Illinois in the 70's. He immediately took to the store for weekly trips and I remember his comment about Walmart to my parents when we were visiting for a vacation and he drove all of us in his car to accompany him on his weekly visit to Walmart. It was the first Walmart we had seen at the time, and after our shopping experience my Grandfather announced: "Well, there goes Sears & Roebuck!" It wasn't until 1989 that Walmart surpassed Sears in revenue, but I guess gramps had it figured out back in the 70's. :mrgreen:

An interesting graphic with regard to the top 25 most profitable companies and how much they earn per second:

Image
https://www.titlemax.com/discovery-cent ... companies/

I fully expect that 20-25 years from now, the top 25 profitable companies that appear on a similar list will not have all of the same members as it currently does. Time will tell if Apple is able to remain competitive and satisfy consumerism through their products and services when compared to future trends that will appear on the horizon. Worth watching for sure.

No doubt that the OP needs to consider portfolio construction in terms of diversity and develop an IPS that includes what percentage of their portfolio could be invested in one company. 5-10% seems to be a suggested guideline as being a maximum by some. If we use that guideline, it certainly points out that the current 12% the OP has might start to raise a red flag depending on the remainder of their overall portfolio construction.
Not legit ... Amazon not on list.

TravelforFun
Are you joking? This is from 2016. You would find amazon on a chart of companies losing money per second back then.

They are making a little profit now, but still wouldn't make this chart.
Retirement: When you reach a point where you have enough. Or when you've had enough.

Nicolas
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Re: Too Much APPL Stock

Post by Nicolas » Sun Oct 21, 2018 10:50 pm

TravelforFun wrote:
Sun Oct 21, 2018 10:23 pm
CyclingDuo wrote:
Sun Oct 21, 2018 7:44 am
retiredjg wrote:
Fri Oct 19, 2018 4:11 pm
CyclingDuo wrote:
Thu Oct 18, 2018 12:18 pm
The death knell for Sears was at least a couple of decades ago. Apple is a long way from any death knell at the moment.
I agree, but would people who owned a bucket full of Sears have known when to sell? I suspect not. People who sold probably sold at a loss and people who held on now have penny stock.

I think Apple stock is and will be a great and wonderful thing....until it is not. Since it is hard to know when to get out, I can't suggest holding a great deal of it or any other individual stock. The fact that none of us can see an end to Apple does not make it a great stock to own a lot of.
Sears was hit by the brunt of an epic move in capitalism of companies that cropped up and allowed middle and lower income consumers to purchase products that improved their lifestyle at lower price points. Walmart, Home Depot, IKEA, Microsoft, Gap, Target, Costco, Bed Bath & Beyond, Best Buy, Lowes, etc... as well as many more were all part of that change in trend for consumerism. A change in import/export laws for appliances also hit Sears. I remember reading a bevy of articles on the trend changes in the late 80's and through the 90's. It was certainly a trend that was worth following with regard to Sears.

My grandfather probably is responsible for planting a seed for me early in my life when a new Walmart was built near his home in southern Illinois in the 70's. He immediately took to the store for weekly trips and I remember his comment about Walmart to my parents when we were visiting for a vacation and he drove all of us in his car to accompany him on his weekly visit to Walmart. It was the first Walmart we had seen at the time, and after our shopping experience my Grandfather announced: "Well, there goes Sears & Roebuck!" It wasn't until 1989 that Walmart surpassed Sears in revenue, but I guess gramps had it figured out back in the 70's. :mrgreen:

An interesting graphic with regard to the top 25 most profitable companies and how much they earn per second:

Image
https://www.titlemax.com/discovery-cent ... companies/

I fully expect that 20-25 years from now, the top 25 profitable companies that appear on a similar list will not have all of the same members as it currently does. Time will tell if Apple is able to remain competitive and satisfy consumerism through their products and services when compared to future trends that will appear on the horizon. Worth watching for sure.

No doubt that the OP needs to consider portfolio construction in terms of diversity and develop an IPS that includes what percentage of their portfolio could be invested in one company. 5-10% seems to be a suggested guideline as being a maximum by some. If we use that guideline, it certainly points out that the current 12% the OP has might start to raise a red flag depending on the remainder of their overall portfolio construction.
Not legit ... Amazon not on list.

TravelforFun
Could be they're not on the list because they aren't among the top 25 for 2016.

This is 2016 data. I calculated $75.15 for Amazon's 2016 net income per second. According to Amigobulls the net income for AMZN for all of 2016 was $2.37B. https://amigobulls.com/stocks/AMZN/inco ... ent/annual

$2,370,000,000 / (365 x 24 x 60 x 60) = $75.15 per second for all of 2016.

TravelforFun
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Re: Too Much APPL Stock

Post by TravelforFun » Sun Oct 21, 2018 10:57 pm

bhsince87 and Nicolas, My bad. I misread the chart as revenue per second.

TravelforFun

bhsince87
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Re: Too Much APPL Stock

Post by bhsince87 » Sun Oct 21, 2018 11:00 pm

TravelforFun wrote:
Sun Oct 21, 2018 10:57 pm
bhsince87 and Nicolas, My bad. I misread the chart as revenue per second.

TravelforFun
Easy mistake to make. ENjoy your week ahead!
Retirement: When you reach a point where you have enough. Or when you've had enough.

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CyclingDuo
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Re: Too Much APPL Stock

Post by CyclingDuo » Sun Oct 21, 2018 11:43 pm

TravelforFun wrote:
Sun Oct 21, 2018 10:57 pm
bhsince87 and Nicolas, My bad. I misread the chart as revenue per second.

TravelforFun
In terms of profit, Amazon did improve to $96.17 per second in 2017 and is on track to cross $100 per second for 2018.

Apple improved to $1533.17 per second in 2017 in terms of profit.

Meanwhile, Jeff Bezos makes about $2800 per second. :beer
"Everywhere is within walking distance if you have the time." ~ Steven Wright

madbrain
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Re: Too Much APPL Stock

Post by madbrain » Mon Oct 22, 2018 12:01 am

CyclingDuo wrote:
Thu Oct 18, 2018 12:18 pm
The death knell for Sears was at least a couple of decades ago. Apple is a long way from any death knell at the moment.
The death knell for Apple was also a couple decades ago. It very nearly went bankrupt in 1997.

Were it not for a $150 million investment from Microsoft, who was trying to get the Justice Dept off their back in the anti-trust lawsuit, Apple would have died that year. Microsoft needed to have one credible OS competitor to defend their lawsuit.

Things in tech move a hell of a lot faster than in retail. Just because Apple it here and huge today doesn't mean it can't be on the decline already, or go on the decline. It's now too big to just disappear overnight, but lots of big players have just gone away over the years. Does anyone remember Compaq, DEC, Ashton-Tate, Lotus, Borland, Netscape ?

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CyclingDuo
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Re: Too Much APPL Stock

Post by CyclingDuo » Mon Oct 22, 2018 12:56 am

madbrain wrote:
Mon Oct 22, 2018 12:01 am
CyclingDuo wrote:
Thu Oct 18, 2018 12:18 pm
The death knell for Sears was at least a couple of decades ago. Apple is a long way from any death knell at the moment.
The death knell for Apple was also a couple decades ago. It very nearly went bankrupt in 1997.

Were it not for a $150 million investment from Microsoft, who was trying to get the Justice Dept off their back in the anti-trust lawsuit, Apple would have died that year. Microsoft needed to have one credible OS competitor to defend their lawsuit.
Don't forget the 3/4's of a billion in a new bond offering Apple did at the time, and the purchase of NeXT for $400M which brought Steve Jobs back to the helm which helped get things on track.
madbrain wrote:
Mon Oct 22, 2018 12:01 am
Things in tech move a hell of a lot faster than in retail. Just because Apple it here and huge today doesn't mean it can't be on the decline already, or go on the decline. It's now too big to just disappear overnight, but lots of big players have just gone away over the years. Does anyone remember Compaq, DEC, Ashton-Tate, Lotus, Borland, Netscape ?
Agree that the technology adoption life cycle is not kind to the companies that don't "win the game", especially if it is a game that is devoid of any moats. Yes, I've read all of Geoffrey Moore's books. :beer

Regardless, the discussion was intended to address the OP's shares of Apple filling up 12% of his/her portfolio. The Boglehead Wiki on managing a portfolio of individual stocks could also be advised for the OP to read:

https://www.bogleheads.org/wiki/Passive ... ual_stocks
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HurdyGurdy
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Re: Too Much APPL Stock

Post by HurdyGurdy » Mon Oct 22, 2018 3:54 am

CyclingDuo wrote:
Thu Oct 18, 2018 12:18 pm
The death knell for Sears was at least a couple of decades ago. Apple is a long way from any death knell at the moment.
The collective intelligence of the market (thousands of very smart investors) have said that in Apple they will put 3.3% of the money in US stocks. No less, and no more.

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Re: Too Much APPL Stock

Post by Grt2bOutdoors » Mon Oct 22, 2018 5:53 am

CyclingDuo wrote:
Thu Oct 18, 2018 12:18 pm
retiredjg wrote:
Thu Oct 18, 2018 10:28 am
CyclingDuo wrote:
Thu Oct 18, 2018 10:11 am
barnaclebob wrote:
Thu Oct 18, 2018 9:09 am
mortfree wrote:
Wed Oct 17, 2018 7:09 pm
No such thing as too much AAPL
For how long though? I'm sure the same was said about GE or Sears at some point.
Probably as long as we live in a connected world and the company mentioned sells various devices to "connect" as well as services to boot (iCloud, iTunes, ApplePay, AppleCare).
That seems logical.

But consider that Sears was one of the first (or maybe the first) mail order companies. There is more mail order shopping now than ever before, but that didn't protect Sears from going under.

Sometimes things don't work out in a logical or expected way.
Understand the premise. However....

The death knell for Sears was at least a couple of decades ago. Apple is a long way from any death knell at the moment.
Oh, how memories are short- lived. It was only 14 years ago where Apple was knocking on deaths door. It was the IPod that rescued them. Were it not for that, Apple may have predeceased Sears. Never say never.
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CyclingDuo
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Re: Too Much APPL Stock

Post by CyclingDuo » Mon Oct 22, 2018 10:11 am

Grt2bOutdoors wrote:
Mon Oct 22, 2018 5:53 am
Oh, how memories are short- lived. It was only 14 years ago where Apple was knocking on deaths door. It was the IPod that rescued them. Were it not for that, Apple may have predeceased Sears. Never say never.
I addressed that all above in previous posts. I certainly did not say "never" with regard to Apple. In fact, I said this:

I fully expect that 20-25 years from now, the top 25 profitable companies that appear on a similar list will not have all of the same members as it currently does. Time will tell if Apple is able to remain competitive and satisfy consumerism through their products and services when compared to future trends that will appear on the horizon. Worth watching for sure.

I absolutely remain open to the prospects that a confluence of events in technology may indeed come along and knock Apple off of the current perch where it finds itself. Currently, I don't see that happening at this exact immediate point in time. But as I said, I remain open to change based on the history within technology and how the tech adoption life cycle functions.

Yes, the iPod moved them out of the game they had already long since lost in the PC world due to Wintel, and the iPod moved them into a brand new game which was the pre-cursor to the iPhone. The addition of wearables, their growth in services (Apple Music, iTunes, Apple Care, Apple Pay, repair, business, etc...), and the advent of the Apple stores throughout the globe have all come together for an interesting eco-system involving hardware & software combined that provides a much different moat than the company had even an inkling of successfully achieving in the 1980's and 1990's. In spite of unit sales across their product line, it continues to be of interest to watch the eco-system and user base via repeat purchases and the services.
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Alexa9
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Re: Too Much APPL Stock

Post by Alexa9 » Mon Oct 22, 2018 10:22 am

Even the Total Stock Market is too concentrated in AAPL for me. That's why I tilt small, value, and use international and bonds. Not too big to fail. The smartphone market is ripe for disruption.

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BL
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Re: Too Much APPL Stock

Post by BL » Mon Oct 22, 2018 12:17 pm

Be sure to not reinvest distributions from these shares if you want to lower your holdings. There are no extra tax consequences for that as opposed to selling in taxable.

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Re: Too Much APPL Stock

Post by Nowizard » Mon Oct 22, 2018 12:37 pm

Personal decision, as others mentioned. One way to look at it is to ask if you rebalance your overall portfolio when you have significant gains. If so, you may want to "Rebalance" by selling a portion of your Apple shares. Failing to do that with Lucent many years ago is my largest financial error.

Tim

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Re: Too Much APPL Stock

Post by BigEater » Mon Oct 22, 2018 2:07 pm

Few companies survive more than 100 years and Apple is already 42. I also have a personal theory that when companies build lavish headquarters it marks a change in the thinking of management—they think they're geniuses so they put the company on cruise control and put their feet up on their desks.
Sears was pretty much at its cultural and economic peak when it built its lavish headquarters in 1970-74. They had to move out 20 years later and now....
Apple opened that monument to itself in 2017, so the clock is ticking.

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Re: Too Much APPL Stock

Post by mrgeeze » Mon Oct 22, 2018 3:21 pm

BigEater wrote:
Mon Oct 22, 2018 2:07 pm
Few companies survive more than 100 years and Apple is already 42. I also have a personal theory that when companies build lavish headquarters it marks a change in the thinking of management—they think they're geniuses so they put the company on cruise control and put their feet up on their desks.
Sears was pretty much at its cultural and economic peak when it built its lavish headquarters in 1970-74. They had to move out 20 years later and now....
Apple opened that monument to itself in 2017, so the clock is ticking.
So what you are saying is that AAPL probably has over half its life left.

With that said I'd probably sell it in the next 5-10 years.

I have a good 10% my portfolio in it. I've purchased it as low as adjusted 58/share - shortly before the 7-1 split
Personally I own a ton of it and keep DRIP ing the dividends (small as they may be).

I like to buy it when the P/E is down closer to 15 and its 10-20% off its 52 week high.

AAPL has been very very good to me.
I own a Mac, Ipad, Iphone and think very highly of the business strategy

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Toons
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Re: Too Much Apple [AAPL] Stock

Post by Toons » Mon Oct 22, 2018 3:35 pm

I would probably keep it another 10 years...
Then re-evaluate.
:happy
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Nicolas
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Re: Too Much Apple [AAPL] Stock

Post by Nicolas » Mon Oct 22, 2018 5:59 pm

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Last edited by Nicolas on Wed Oct 24, 2018 9:30 am, edited 1 time in total.

Boglegrappler
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Re: Too Much Apple [AAPL] Stock

Post by Boglegrappler » Mon Oct 22, 2018 6:26 pm

Its worth observing that some of the discomfort with high concentrations of very successful companies can only be remedied by applying the reverse of conventional investing wisdom. "Cut your profits and let your losses run." :)

I have a similar problem" with Amazon currently. I don't intend to correct it.

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Re: Too Much Apple [AAPL] Stock

Post by bluquark » Mon Oct 22, 2018 6:32 pm

If you plan to donate some of your savings to charity over your lifetime, the most tax-efficient way to do so is by donating appreciated stock. Assuming you bought the stock more than a year ago, you can donate that AAPL to a DAF and take the entire amount as a deduction against this year's income while avoiding capital gains tax. Then you can reallocate the amount to an index fund inside the DAF until you decide which charities to donate it to.

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Re: Too Much APPL Stock

Post by Rowan Oak » Mon Oct 22, 2018 8:00 pm

Watty wrote:
Thu Oct 18, 2018 8:29 am
Duffydog1 wrote:
Thu Oct 18, 2018 8:19 am
It is held in taxable and nontaxable accounts so i have to be careful about the taxable accounts.
Selling it in the nontaxable accounts is an easy choice. Putting the money from the sale into something like a total stock market index fund could make sense.
Good advice.
“If you can get good at destroying your own wrong ideas, that is a great gift.” – Charlie Munger

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Re: Too Much APPL Stock

Post by madbrain » Mon Oct 22, 2018 11:39 pm

CyclingDuo wrote:
Mon Oct 22, 2018 12:56 am
Don't forget the 3/4's of a billion in a new bond offering Apple did at the time,
I don't recall this one. When was this ?
and the purchase of NeXT for $400M which brought Steve Jobs back to the helm which helped get things on track.
That happened the year before - 1996 . It actually drained Apple's finances significantly and didn't immedaitely result in any Apple product containing Next technology until 5 years later - the first release of OS X. It was a big gamble that paid off.

But I think without the 1997 investment from Microsoft, Apple still would have been toast even with Jobs.

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