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I'm a new member and retiring in about 18 months. I have a substantial 403b Account and additional investments of about $400k. I have been attracted by Apple for some time. Does it make sense to invest about $10k in Apple common given the fact that the share price has increased to a very high level now?
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If your time range is only a year and a half, no. Apple has a slight case of the hiccups with component supply problems after the disasters in Japan, and there are lingering concerns about Apple after Steve Jobs, but most seem to think that the company's design, delivery and domination are secure in the future.

Fuskie
Who would only buy if you have a long enough investment window...
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I'm a new member and retiring in about 18 months. I have a substantial 403b Account and additional investments of about $400k...Does it make sense to invest about $10k in Apple...

I am a huge fan of Apple, both the company and the products. If you study the numbers, they have excellent cash flow and earnings, and an unbelievable amount of cash on hand. I respectfully disagree with Fuskie and would be (and have been) a buyer of Apple here (adding to my now full position). I say that knowing that you are retiring in 18 months. My reasoning is that you have a substantial 403b as well as 400,000 in other investments. That means a 10,000 investment is pretty much chump change in relation to the size of your portfolio, and even if Apple took a major dive (say, when Jobs dies), it will recover. I also believe the passing of Jobs is pretty much baked into the stock at this point, though it might temporarily head south when that happens. I know the same thing will happen with my Berkshire shares when Buffett dies, but I also know the company is sound and will bounce back.

Apple is just getting started IMHO (and also in the opinions of many others, a lot of them here on the Fool). I can't wait to see where it is iin 10 years. There's a lot of good reading out there about the company. I suggest you really dig into what will be a pleasant exercise. If you do, I bet you buy, and with little worry. If I didn't own any, I'd buy some for sure.

Best,

Vivienne
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What you are really asking is "what will the price of APL do in the future?"

No one can answer that question. It is one of the reasons I put my retirement money in broad based low cost index funds and own the whole market. That way I get to participate in APL and most other companies out there without worrying that much about any one of them.

Good luck with your upcoming retirement.

-drip
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I'm a new member and retiring in about 18 months. I have a substantial 403b Account and additional investments of about $400k...Does it make sense to invest about $10k in Apple...

I am a huge fan of Apple, both the company and the products. If you study the numbers, they have excellent cash flow and earnings, and an unbelievable amount of cash on hand. I respectfully disagree with Fuskie and would be (and have been) a buyer of Apple here (adding to my now full position). I say that knowing that you are retiring in 18 months. My reasoning is that you have a substantial 403b as well as 400,000 in other investments. That means a 10,000 investment is pretty much chump change in relation to the size of your portfolio, and even if Apple took a major dive (say, when Jobs dies), it will recover. I also believe the passing of Jobs is pretty much baked into the stock at this point, though it might temporarily head south when that happens. I know the same thing will happen with my Berkshire shares when Buffett dies, but I also know the company is sound and will bounce back.



FWIW ...i agree (have many shares AAPL and Holding, retired 7yrs now)

but -- i read OP as having total 400k, so 10k might be high to start with.

and be prepared to deal with much volatility
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lawrhs writes,

I'm a new member and retiring in about 18 months. I have a substantial 403b Account and additional investments of about $400k. I have been attracted by Apple for some time. Does it make sense to invest about $10k in Apple common given the fact that the share price has increased to a very high level now?

AAPL is the second largest company by market capitalization after Exxon. It makes up about 2.7% of the S&P 500.

If you have $400,000 in an index fund, you probably already own $10,000 worth of AAPL.

intercst
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I am going to assume you are asking "Will Apple continue to increase in price?". Probably for a while.

10K is about 2.5% of you funds - if I am correct you have a total of $400K.

There are few sayings about investing - and things get trait because they are repeated and generally correct. One such saying is Sell when you hear about a stock in Barber shops or elevators i.e. when the amateurs are interested it is getting dangerous. One example - in the late 90s I bought a stock name Uniphase and it did well. I invested about $10K and a few months later sold the stock, using the proceeds to buy a car. That stock topped out at over $1300 a share and fell to $13. Last time I looked is was $20.

If you are approaching retirement, I suggest you put your funds in a mutual fund that has an good, but not the best track record. MorningStar with 4 or 5 stars.

Gordon
Atlanta
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I have a substantial 403b Account and additional investments of about $400k.

Hmmm. I read this as having a substantial 403b Account plus additional investments of about 400,000.
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