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Comment by powertower | Hacker News Reader

> Remember, buy low, sell high.

Over the years, I've learned it's more effective to: buy when there is doom and gloom (blood on the street), sell when there is nothing but good news (about the company, industry).

For example, when there is a crash and everyone is saying: wait some more, the bottom is not reached yet, it's all going to shit, then buy.

You should also always buy in steps, buy 30% now, wait some more, buy another 30%, wait some more, buy remaining 40%. This helps tremendously with your nerves and emotions.

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Apple's PE is only 17. ridiculously low considering Apple's revenue/profit/cash growth. Google's PE = 20. Amazon's PE = 134. Both not growing nearly as fast as Apple.

1. Apple's Last quarterly earnings DID NOT include China's iPhone 4S sales. Plenty of room for growth.

2. the iTV will be another billion dollar revenue stream for Apple.

3. NFC. Apple earning $$$ each time 100+ million people use their iPhone/iPod touch to pay for something? we're looking at a whole new ball game fellas.

Eventually Apple will run out of people who can afford to buy iPhones and iPads.

They said that about Apple's Mac and iPod five years ago. Notice they introduced two entirely new product lines since then?

The company has proven over and over that it can branch out, and disrupt or define entire new markets... this is in addition to their incredible P/E ratio and unfathomably large cash hoard.

That and without stock splits, dividends, or stock buybacks.

people replace their phones,ipads,laptops,TVs, etc. did I mention NFC?

You think Apple ignores the cheapskate customer? Hmmm, not sure about that. What of the entry-level iPod Nano and the iPod Shuffle during the 2005-2008 era? This crushed the competition. And what of Apple TVs? How will this affect the way people watch the boobtube? Gonna be interesting to see that play out...

I think that's a good strategy... but I wouldn't sell just because there's nothing but good news. If you're long something and its going up, just let it go up. When it stops going up, then maybe think about it. If its going up, there's nothing wrong with trimming a little off of it, especially if you think it has gotten ahead of itself.

The thing I strive for is to never need or want the market to do anything.... to always be positioned such that any way the market goes I'm happy. If the markets going my direction, I just let it. If it goes a different direction, I respond and then get to where I'm happy with it going that direction.

Of course the turns are the trickiest (but this is then also in the realm of trading and timing and most people don't need to do that... just buy a good company and hold it.)

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