Is Apple Right For You?

Over the last few months, the rumors have been swirling regarding Steve Jobs’ health.  He has definitely looked thinner over the last few weeks than he did a year ago.  There were rumors he had cancer and everything else you can imagine.  We all know how well the stock market has done since November 21st.  But, Apple, Inc. (AAPL) didn’t participate in that run.  The stock was around $84 on November 21st and around $85 or so on Friday.  I believe it was 100% due to these rumors.  Why Steve Jobs didn’t address these rumors sooner, I’m not sure.  But, today, he gave a statement saying his weight loss was due to a hormone imbalance and he’ll remain CEO.  The stock is up $4.25 today, or almost 5%.  Since Friday, it’s gone from $85 to $95. 

I have to say, if you are this nervous as an investor in Apple, then you shouldn’t be participating.  Apple isn’t just about one guy.  Maybe back in the day it was, but not anymore.  Granted, you always run the risk when you invest in individual companies that something could happen to a key employee.  But, what’s not to say that Steve Jobs gets in a car wreck?  Or, what if he likes to water ski and is killed in an accident?  These are all possibilities.  I think it’s ridiculous the stock is bouncing around the way it is based on rumors and then statements regarding Jobs’ health. 

The Bernie Madoff situation has taught everyone not to put too much confidence in any one individual.  Apple investors shouldn’t either.


1 Response to “Is Apple Right For You?”

  1. 1 Hedge January 5, 2009 at 7:27 pm

    Valid points. For companies as large as Apple, issues like founders’ health are just excuses for trading.

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