Apple at 420

[TexasTowelie]

17. Yes, it is still rolling in cash

but to expect that the stock price is always going to rise isn't realistic.

My question is why would any long-term investor consider investing in a company that didn't pay dividends between February 2005 and July 2012?

I don't know where you live, but in Texas the Employees Retirement System is only permitted to put a maximum of 1% of its assets into a particular stock to mitigate any sudden swings in stock price. If the pension funds that you are referring to are suffering that much because they don't have such rules, then you (and the other members) need to take that to the governing board instead of attacking someone on the Internet that was posting a passing comment on the price hitting an arbitrary benchmark. You might have even enjoyed the humor if the price went up to 420 instead of down to 420.

Again, I have sympathy if you've lost money. If you've held the stock for several years, then you are still in the black since the stock had exponential growth and it is a strong company. If you invested within the last year, then it has probably been a wash getting involved with Apple. However, if you believe so strongly in that stock, then now is an opportunity to pick up additional shares while the price is at a discount. Otherwise, I suggest that you diversify your portfolio.

From my personal point of view, I would enjoy being in a situation where I could afford to risk my money in the stock market for short term profits. Be grateful for what you have because there are plenty of people who aren't as fortunate.

Good luck with your investments. I've ridden the crazy train also when I joined an ESOP plan--most of my shares were purchased in the $120-$150 range and the stock plunged to $47 then turned back around and I sold at $273 about four years later. The fact that the shares plunged allowed me to acquire more stock and I profited handsomely but I also understood the risk involved.