We're Buying (Even More) Apple

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics around the investing world.

It was quite an October for the company from Cupertino. With the recent pullback in the share price, we're buying more for our real-money portfolio. First, Apple released, as expected, the iPad Mini, an 8-inch tablet designed to compete with Google's Nexus 7 and Amazon.com's Kindle Fire. Next, Apple reported a miss on earnings. Sales came in just fine, but margins contracted. Finally, CEO Tim Cook decided to shake up management following the lackluster launches of Siri and its Maps app, in addition to some head-scratching moves in its retail business.

With the pullback in price below $600, Apple is a great buy. Earnings guidance may be lower, but the company continues to dominate its markets. It will be interesting to see whether Nokia can turn itself around and if Microsoft's Surface becomes a player in the tablet market.

Ultimately, Apple has a strong balance sheet and a cheap valuation. That's why John and David are buying.

Apple is the most influential company in technology and has delivered market-smashing returns for those lucky enough to have invested in the company. However, maintaining that torrid pace will only get more difficult. If you’re interested in  continuing updates and guidance on the company whenever news breaks, we've created a brand new report that provides ongoing coverage of Apple. To get started, just click here now.

 

David Meier owns shares of Apple. John Reeves owns shares of Apple and Google. The Motley Fool owns shares of Apple, Amazon.com, Google, and Microsoft. Motley Fool newsletter services recommend Apple, Amazon.com, Google, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (7) | Recommend This Article (16)

Comments from our Foolish Readers

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  • Report this Comment On November 03, 2012, at 11:51 AM, cmstripling wrote:

    Just a note, I just got my iPad mini in and immediately had to reset the thing. They have a major software issue that blocks users from downloading from the App Store. It's fixed but massively aggravating. Google "App Store session timeout". Post Steve Jobs problems are stacking up. I may be unloading my APPL stock.

  • Report this Comment On November 03, 2012, at 1:37 PM, deasystems wrote:

    Gee, cmstripling, thanks for the warning but what, exactly, is "fixed?" And what are all those imaginary problems that are "stacking up?"

  • Report this Comment On November 03, 2012, at 1:42 PM, bbrriilliiaanntt wrote:

    Selling all my AAPL! Everyone sell and get the price down to $550! Hurry! Sky is falling...nudge, nudge, wink, wink... <;)

  • Report this Comment On November 03, 2012, at 1:46 PM, bbrriilliiaanntt wrote:

    @cmstripsomething, it is a version 6.0.1 version that fixes post-big-release bugs, pleez, but thx for helping feed negativity and push stock down for a great entry point. People crack me up...

  • Report this Comment On November 04, 2012, at 8:33 PM, liztonio wrote:

    @bbrriilliiaanntt , Isn't that what Apple fans and analysts do to others, like Nok and Rimm? Help feed negativity so the precious stays on top. Personally, I hope all the companies make it so we can get quality products, especially Apple who now is sitting on its chair laughing at how much they can charge with behind the times technology.

  • Report this Comment On November 04, 2012, at 9:16 PM, sharpx2 wrote:

    Played with both new tablets today at the Apple Store. I was able to directly compare the iPad2 with the new iPad (retina and high-speed processor.) It looked far better and crisper, and ran circles around it. The Mini was a delight and my wife has one on order (we went in to make sure it lived up to expectatons.) It is a great piece of personal electronics and will do just fine. And yes, I thank the hysterics for their part in driving down Apple shares to a nice entry point. Every product they've brought out recently really shines and will produce bust-out earnings in this fourth quarter.

  • Report this Comment On November 08, 2012, at 4:12 PM, griderX wrote:

    I'm with you guys on this...bought shares this week!

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