Hold Apple stocks for at least the next 12 months - the PEG ratios are attractive at a below 1 ratio and coupled with its stupendous free cash flow and huge cash hoard plus its market share leadership, it wouldn't surprise me in the least if the stock price goes into the 400s in 2012.

Over a longer term period, all this is small potatoes. What matters is that if the stocks you are holding in hand is a real gem and was bought at a good price, you can only gain.

I was referring to short term ups and downs whether they are political rumblings, natural disasters, quantitative easing and other monetary policies and what not. A company built on rock-solid fundamentals and in the right industry with its stock bought below its intrinsic value will always yield greater returns.

Buy Apple, O&G service providers and north american energies. Apply the usual intrinsic value investing valuations with emphasis on short-term debt levels (including contingencies and derivative-linked obligations) and free cash flow.

Buy at the price which you feel the stock has a lower intrinsic value than it is worth or it's PE/G is at an attractive value vis-a-vis its competitors.

There's no absolute right time to buy or sell a stock as nobody can ever time the market consistently, not even the likes of George Soros or Warren Buffett.

This post has been edited by bellion: Apr 14 2011, 11:24 PM

I believe it's a sideways market over the next several years but companies are also pressured into raising dividends - case in point was when Microsoft even borrowed to pay dividends. Which is why it's good to keep a good chunk of one's stock portfolio in high dividend yield stocks.

Precisely.

So pick the stocks which pay steady dividends with good payout ratios paid for by their free cash flow streams. If you spot a stock which has steadily increasing free cash flow and steady (not sharply) increasing dividend yields and in a good business, buy it when the price is right.

Good move - commodities is a proverbial mine field and the reason why I never venture into it, no matter how attractive the gains look.

Your investment portfolio is made up entirely with equity options?

Steve Jobs stepping down from his CEO seat was always a matter of time and not unexpected at all.

To me, this is excellent news as a significant correction on Apple stock prices presents me an opportunity to purchase Apple shares at a discounted price with a low PE/G ratio.

With or without Steve Jobs, the company has an excellent succession plan in place (i.e. Tim Cook) and is supremely placed to cement its position in the consumer IT space for the foreseeable future. I see absolutely no reason why Apple stock prices should not be appreciating well into the 400+ dollar mark hence it would be a wise move to buy and hold its shares now.