No. of Recommendations: 0
The only thing I'd remind yourself of is that there's competition for the iPod on the horizon. I do grant that they dominate the market right now. But remember that Apple's stock price may already reflect that, and then some. What I like about it, though, is that you're observing the world around you and planning to place some bets on what you're seeing. Apple, though, is now a $36 billion company with around $700 million in owner earnings. I just don't see earning great returns from this over the next five years. It's had a remarkable run, rising about six times in value over the past two years. But given its size, its valuation, and the potential for competition, I'm not excited about AAPL today as an investment.

That said, I love the idea of your adding more stocks to your portfolio. You're young. You should be putting yourself in position to learn as much as you can about the business and investing world. For me, that means opening 20 - 50 different positions over the next few years. Follow each situation. Learn from them. You'll start to see a pattern to your long-term winners and a pattern to your losers. Within a decade, you'll be able to pick off those long-term winners one by one as they roll through. Sure, you'll make mistakes. But you'll be tilting the odds very much in your favor. So, my recommendation is that you save a little each month, and build out a portfolio of a few dozen stocks.

Tom Gardner
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