Boon or Bane?
Apple is almost undoubtedly going to make new all time highs eventually. And Warren Buffets decision to buy Apple on the dip is a good one. Especially when crying millions of shares. So is it a good time to buy Apple shares since a whale like Buffet scooped up billions worth? To answer this question we must understand why Buffet made the purchase. The most obvious reason is that Apple is on a big dip and Buffet believes the price will go up in the future eventually. I think this is true as well. But has Apples share price reached the bottom yet and how much time will pass before Buffet will profit? We must consider how hard it is for a buyer of millions of shares to find a seller of that many. I mean he is not buying millions of shares on the open market that is for sure. It is not often that a whale like Buffet will even be able to find a viable seller of billions of dollars worth of shares. Buffet must wait until another whale is willing to let go of the shares. He could easily find sellers of that many shares near all time highs but that is not as profitable. Basically what im saying is that Buffet can’t just buy a million shares of Apple whenever he wants. This is why he enters into investments on a big dip and they can still keep dipping for several weeks sometimes. Think about it. If you were a whale selling millions of shares to Buffet then you would not sell them if you thought Apple was truly a market bottom and is only going up from here. You would sell them to Buffet thinking there is more downside. This is why several times in history when Buffet makes several big purchases in the stock market the stock market continues to drop even though an insider like Buffet bought in. It is his only opportunity to get in on millions of shares even though he knows there is more downside. Just like his last round of massive share buyouts during the stock market crash of the pandemic. Buffet bought billions of dollars in companies shares during the market downturn and the market continued to fall much much further after his major purchases.
Basically Apple is a great investment in the long term. But dont blindly believe that the share price will skyrocket simply because Buffet jumped in. Even though it appears that we may get a small relief rally in the markets on the short term. There very well could be more downside in Apple this year
Basically Apple is a great investment in the long term. But dont blindly believe that the share price will skyrocket simply because Buffet jumped in. Even though it appears that we may get a small relief rally in the markets on the short term. There very well could be more downside in Apple this year
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solo invest : I remember in 2020 when buffet loaded up on a a few companies during the crash. I bought a lot of what he bought right after he announced his big purchases. I put most of my money on $Delta Air Lines (DAL.US)$ because he made an especially big purchase on delta. The market tanked way more after I bought the shares. Eventually I made my money back but I was sweating bullets when the price dropped even more after buffet purchased all those shares
SpyderCallOP solo invest: I remember that. I was new to options and was trying to learn at this time so i got killed in the market crash. Shoulda paper traded. I even went very far out with a leap on delta. Didn’t work out too well. I had no idea how to trade options at that time. I was just throwing money away.
SpyderCallOP : On a lighter note the futures opened nicely on the green side for the week. It’s looking bullish for apple so far. Very early but so far. Monday may be red though after such a Green Day on friday.