AAPL is a great currency

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    Posted: 06 March 2012 11:48 PM

    Why Apple Stock is Better Investment Than a House.

    In 2002, the typical American home cost 18,704 shares.  Today, it costs 528 shares.

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    Posted: 07 March 2012 12:07 AM #1

    Mace - 07 March 2012 03:48 AM

    Why Apple Stock is Better Investment Than a House.

    In 2002, the typical American home cost 18,704 shares.  Today, it costs 528 shares.

    A fact I know all too well. In just 2010 I sold 1000 shares to buy a house that I could have gotten for just 490 today. I would love to have those extra 510 shares back but tough to regret a nearly free house.

         
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    Posted: 07 March 2012 12:34 AM #2

    AAPLtini - 07 March 2012 04:07 AM
    Mace - 07 March 2012 03:48 AM

    Why Apple Stock is Better Investment Than a House.

    In 2002, the typical American home cost 18,704 shares.  Today, it costs 528 shares.

    A fact I know all too well. In just 2010 I sold 1000 shares to buy a house that I could have gotten for just 490 today. I would love to have those extra 510 shares back but tough to regret a nearly free house.

    This is why, after agonizing for the past year over liquidating shares to buy a house, I recently decided to rent a house instead. That’s what options (hopefully) will pay for, as I sit on my common…

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    Posted: 07 March 2012 11:44 AM #3

    I’m in the same boat, JD. Looking to buy my first place this spring, will probably have to sell a little bit to cover the down payment.

    The upshot is I’m excited to own my own place, and it will be a 2-flat here in Chicago, so rental income should cover at least half the mortgage.

    It’s a trade-off I’m willing to make now. Glad I wasn’t ready in ‘08 wink

         
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    Posted: 07 March 2012 11:58 AM #4

    That’s interesting.  Friends and family tell me to sell my shares and payoff my mortgage.  I tell them no way.  It will paid off in 7 years anyway and in that time I will use my shares to buy more on margin.

    Same thing applies to my CC debt.  I do want to pay that off so I can invest more in aapl, but it is challenging when one is attempting to maintain a certain fun and vacation filled lifestyle for the who family.smile


    That story by the way was emailed to me by my brother.  He is considering buying a house.  It made him think a little.  I think as these stories hit the wires and Internet it brings more attention to the success story we have known for 7 years or more.  Every day there are new buy and hold investors entering this money making machine called Apple.

         
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    Posted: 07 March 2012 12:44 PM #5

    omacvi - 07 March 2012 03:58 PM

    That’s interesting.  Friends and family tell me to sell my shares and payoff my mortgage.  I tell them no way.  It will paid off in 7 years anyway and in that time I will use my shares to buy more on margin.

    Same thing applies to my CC debt.  I do want to pay that off so I can invest more in aapl, but it is challenging when one is attempting to maintain a certain fun and vacation filled lifestyle for the who family.smile


    That story by the way was emailed to me by my brother.  He is considering buying a house.  It made him think a little.  I think as these stories hit the wires and Internet it brings more attention to the success story we have known for 7 years or more.  Every day there are new buy and hold investors entering this money making machine called Apple.

    Recalled that story resonant with mine?  Came to US in 2002, rent a house for 2 years, bought a small condo and stayed for 3 years, then sold the condo and bought a single family house.  Three years later, bought a single family house for rental.  Have I sold all AAPLs to buy that condo, I would still be paying monthly mortgages, now I have a fully paid single family house + another one for rental.  Currently, sold some AAPLs and looking to buy 2-3 houses in Austin.  RE is my diversification to AAPL.  Not diversifying to dividend-paying stocks because most are dogs.  Don’t like Bonds/Treasuries either.  RE is a nice hedge vs hyperinflation.  It won’t become zero value like stocks.
    Disclosure:  Stock portfolio comprises AAPL (95%) + Index fund (5%).

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    Posted: 07 March 2012 03:44 PM #6

    I like to think of my portfolio in terms of AAPL currency, and every currency needs a symbol. What better symbol than “A”?

    So with AAPL at $532, a million dollar account might be worth about A1880. i.e. about 1880 AAPL share equivalent. The composition of this example account could be 1000 AAPL shares, 58 Jan 13 $500 calls worth $8000 each, and some cash.

    But a problem with AAPL as a currency is deflation in terms of A. A new top of the line iPad might go for A2 today with some pocket change left over, but soon enough I expect the top of the line iPad will cost A1.

    So do I order an iPad today or do I wait? Let me think a minute…. Who am I kidding? I’ve been waiting for this iPad long enough. Today it is!

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