Too Much Apple [AAPL] Stock

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spreadsheetguy
Posts: 20
Joined: Wed May 02, 2018 12:19 pm

Re: Too Much Apple [AAPL] Stock

Post by spreadsheetguy » Tue Oct 23, 2018 1:00 am

bluquark wrote:
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.
This is really interesting. I'm going to do more research on DAF to see if it makes sense for our situation, as I'm currently sitting on a very large amount of unrealized taxable, capital gains (admittedly a nice problem to have).

bluquark
Posts: 217
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Re: Too Much Apple [AAPL] Stock

Post by bluquark » Tue Oct 23, 2018 2:01 am

Great! I think DAFs are a fantastic tool and I’ve been really happy with mine since I opened it last year. I think anyone who donates more than trivial amounts should have one for the convenience factor alone, and if you have enough capital gains, it becomes one of the key tax-efficiency tricks (can be on the same scale as megabackdoor or even much better, depending on the amount).

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CyclingDuo
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Re: Too Much APPL Stock

Post by CyclingDuo » Tue Oct 23, 2018 6:27 am

madbrain wrote:
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 ?
Amelio takes over as CEO and immediately goes to work to make cuts, shore up the balance sheet and initiate the turnaround in 1996.
$661M Bond Offering in 1996 through Goldman Sachs.
Q3 1996 ends with a profit.
Apple announces cash/stock deal on 12/20/96 to purchase NeXT.
Amelio ousted in 1997, Jobs acts as the interim CEO.
Steve Jobs immediately cuts 3000 more jobs at Apple, and 70% of the products Apple offered - changes focus to 4 grids only: iMac, iBook, PowerMac, Powerbook.
Jobs cleans house with the Board of Directors and assembles a new team in 1997.
Jobs kills all of the clone vendors in 1997 with the release of Mac OS 8 - the clones previously had been able to license the Mac OS, but no longer.
August 1997 Microsoft buys $150M of Apple non-voting stock and agrees to a 5 year deal of developing Microsoft Office and Explorer for Mac - and in return Apple agrees to make Explorer the default browser on Macs for 5 years.
iMac G3 was introduced in August 1998.
madbrain wrote:
Mon Oct 22, 2018 11:39 pm
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.
The NeXT deal brought back Jobs as CEO, and it included key executives from NeXT taking top positions at Apple as part of the deal which was instrumental in having an executive team at Apple that would not question what Jobs was doing. macOS, iOS, watchOS, tvOS all stem from the merging of NeXT software.

Jobs, who had been away from the PC war with Microsoft since 1985, realized that game/war had long since already been won by Microsoft. Partnering with Bill Gates on Office/Explorer was indeed a key move - at least on the PC side of Apple's business. The move outside of the PC business was the more important business decision for Apple (iPods, iTunes, iPads, iPhones).

No doubt the company was on the brink as most of the entire PC industry was in a bit of a slump in the 1996/97 years, and Apple itself had way too many products that were not profitable, too large of a team, and needed to be trimmed down, focused, and guided. Both Amelio and Jobs realized that and quickly righted the ship.
"Everywhere is within walking distance if you have the time." ~ Steven Wright

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Duffydog1
Posts: 64
Joined: Sat Dec 03, 2016 1:42 pm

Re: Too Much Apple [AAPL] Stock

Post by Duffydog1 » Sat Oct 27, 2018 6:54 am

spreadsheetguy wrote:
Tue Oct 23, 2018 1:00 am
bluquark wrote:
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.
This is really interesting. I'm going to do more research on DAF to see if it makes sense for our situation, as I'm currently sitting on a very large amount of unrealized taxable, capital gains (admittedly a nice problem to have).
Sorry for my ignorance but can you explain a DAF?

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Starchild
Posts: 105
Joined: Fri Feb 09, 2018 9:01 am

Re: Too Much Apple [AAPL] Stock

Post by Starchild » Sat Oct 27, 2018 8:37 am

I had a similar problem with Apple stock. I still have it, but have added to other parts of the portfolio to reduce it's weight.

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CyclingDuo
Posts: 1917
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Re: Too Much Apple [AAPL] Stock

Post by CyclingDuo » Sat Oct 27, 2018 9:24 am

Duffydog1 wrote:
Sat Oct 27, 2018 6:54 am
spreadsheetguy wrote:
Tue Oct 23, 2018 1:00 am
bluquark wrote:
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.
This is really interesting. I'm going to do more research on DAF to see if it makes sense for our situation, as I'm currently sitting on a very large amount of unrealized taxable, capital gains (admittedly a nice problem to have).
Sorry for my ignorance but can you explain a DAF?
https://www.fidelitycharitable.org/phil ... fund.shtml

https://www.nptrust.org/what-is-a-donor-advised-fund

https://www.schwabcharitable.org/public ... ised_funds

https://www.irs.gov/charities-non-profi ... ised-funds
"Everywhere is within walking distance if you have the time." ~ Steven Wright

crossroad101
Posts: 27
Joined: Sun May 27, 2018 3:55 pm

Re: Too Much Apple [AAPL] Stock

Post by crossroad101 » Sat Nov 24, 2018 6:39 pm

Hello all

With regards to AAPL I wanted to inquire from the wisdom of Bogleheads regarding the above topic (rather than start entirely new thread)

I have also fair exposure to AAPL for various reasons, is this the time to buy/hold and stay the course?

Or cut your loss and re-balance?

I have funded 3 fund taxable portfolio over the course of this year but limited by how much to rebalance due to capital gains / NIIT tax implications. Hence still left with significant single stock exposure.

Thank you in advance for your valuable inputs.

Sincerely
crossroad101

UpperNwGuy
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Joined: Sun Oct 08, 2017 7:16 pm

Re: Too Much Apple [AAPL] Stock

Post by UpperNwGuy » Sat Nov 24, 2018 7:18 pm

I would sell most of that Apple stock. They had a jump on the competition for the last ten years, but the competition has caught up. There is no reason to expect Apple to outperform their competitors in the years ahead.

retiredjg
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Re: Too Much Apple [AAPL] Stock

Post by retiredjg » Sat Nov 24, 2018 7:36 pm

crossroad101 wrote:
Sat Nov 24, 2018 6:39 pm
With regards to AAPL I wanted to inquire from the wisdom of Bogleheads regarding the above topic (rather than start entirely new thread)

I have also fair exposure to AAPL for various reasons, is this the time to buy/hold and stay the course?

Or cut your loss and re-balance?
It was always the right time not to hold a lot of one individual stock, Apple or otherwise.

If you are looking for market timing suggestions about holding Apple....you are probably asking the wrong people. And you won't get any reliable information anywhere else either. :happy

Dottie57
Posts: 5019
Joined: Thu May 19, 2016 5:43 pm

Re: Too Much Apple [AAPL] Stock

Post by Dottie57 » Sat Nov 24, 2018 8:49 pm

I sold AAPL several years ago at a profit. I was tired of the ups and downs which occurred when quarterly results didn’t match hyped up expectations ( which far exceeded Apple’s guidance).

mrgeeze
Posts: 196
Joined: Wed Nov 04, 2015 11:09 am

Re: Too Much Apple [AAPL] Stock

Post by mrgeeze » Sat Nov 24, 2018 9:04 pm

I'm already overweight with aapl in my portfolio.
but when the market opens on monday I'm buying 500 shares.
I hope to sell it within a month or two, hopefully in tax year 2019.

I think that's a pretty safe play foe hopefully a 5-10% return.

of course, its a bit like gambling.
and i have been wrong before.

such is life

Valuethinker
Posts: 37016
Joined: Fri May 11, 2007 11:07 am

Re: Too Much Apple [AAPL] Stock

Post by Valuethinker » Sun Nov 25, 2018 8:44 am

mrgeeze wrote:
Sat Nov 24, 2018 9:04 pm
I'm already overweight with aapl in my portfolio.
but when the market opens on monday I'm buying 500 shares.
I hope to sell it within a month or two, hopefully in tax year 2019.

I think that's a pretty safe play foe hopefully a 5-10% return.

of course, its a bit like gambling.
and i have been wrong before.

such is life
You are, quite frankly, rash to the point of stupidity assuming your initial capital is all material to your retiremnent plans. For a 10% return?

If you lose money, and you have say 30 years left in your investing career, then if stocks return 7% p.a. long run, you are losing money lost x (1+0.07)^30.

columbia
Posts: 1252
Joined: Tue Aug 27, 2013 5:30 am

Re: Too Much Apple [AAPL] Stock

Post by columbia » Sun Nov 25, 2018 9:45 am

The above seems like a sketchy plan, but good luck. 😲

crossroad101
Posts: 27
Joined: Sun May 27, 2018 3:55 pm

Re: Too Much Apple [AAPL] Stock

Post by crossroad101 » Sun Nov 25, 2018 1:51 pm

Thank you for all the inputs.

Sincerely
crossroad101

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