Gyroscopic Investing

If you're doing the kind of portfolio management that involves rebalancing individual stocks, a stock nominally priced at $400 per share is harder to balance than if it were priced at $40.

Most public companies split their stock when it reaches a certain price point, usually somewhere between $80 and $100. It attracts more shareholders.  Those who do not split have their own reasons for that, including the desire for a particular type of shareholder. And some just don't want to waste money on all the administrivia involved in a split.

Is this why Google and Bershire Hathaway don't split?

rocketdog wrote: Is this why Google and Bershire Hathaway don't split?

They don't care about pleasing Wall Street's myopic short-term focus.

MachineGhost wrote:

rocketdog wrote: Is this why Google and Bershire Hathaway don't split?

They don't care about pleasing Wall Street's myopic short-term focus.

Maybe, but it also has the effect of shunning most investors like us.  Certainly for BRK anyway (unless you buy the B-class shares, or maybe a fraction of an A-class share, or else wind up holding a slice of the A-class in an index fund). 

MachineGhost wrote:

rocketdog wrote: Is this why Google and Bershire Hathaway don't split?

They don't care about pleasing Wall Street's myopic short-term focus.

You can add Amazon to that list as well.

Anyone for Apple bonds?
http://online.wsj.com/article/SB1000142 ... 82274.html
Too bad the term "I-Bond" is already taken.

(I know this is the Stock section, but it doesn't really merit its own thread).
Edit: Never mind. I see PS's thread here - http://gyroscopicinvesting.com/forum/ht ... ;topicseen

Apple doing a bond offering is a general sign it considers its stock to be undervalued, otherwise they'd be using their overvalued equity to purchasing undervalued equity.  If you don't know who the patsy at the table is, its...

MT,

Your trade is shaping up nicely so far. Is there a price or P/E that will tempt you to sell?

melveyr wrote: MT,

Your trade is shaping up nicely so far. Is there a price or P/E that will tempt you to sell?

I don't know.  I will probably just sit tight for a while.  I'm looking forward to reinvesting my Apple dividends right now.

My last Apple trade involved a buy at $240 and a quick sale when it hit $260.  At the time I felt like a genius...but then I watched it go to $700 and I didn't feel quite as smart. 

MediumTex wrote: My last Apple trade involved a buy at $240 and a quick sale when it hit $260.  At the time I felt like a genius...but then I watched it go to $700 and I didn't feel quite as smart. 

Don't feel too bad. I felt like a genius when my AAPL shares hit $700... only to watch the price tumble below $400 mere months later.

{ fixed }
did you mean to write something else that second time, PS?

Oops. I meant to edit the initial post to correct a grammar error. Derp.

MediumTex wrote: I bought some this morning at $395.99.

I bet you're happy right now.

Pointedstick wrote:

MediumTex wrote: I bought some this morning at $395.99.

I bet you're happy right now.

Buying below $400 a share was a pretty easy call.

With that nice dividend coming in, it's a great investment all the way around.

Do you think that you owe Carl Icahn a steak dinner at the very least?

Reub wrote: Do you think that you owe Carl Icahn a steak dinner at the very least?

Do you owe the rooster a steak because the sun rises?

Everyone's a genius in a bull market.

It's been almost a month since anyone posted anything in the stock section of the forum?

That's really weird.  I guess it means that the stock market has been exceptionally boring recently.

What a change from a few years ago.

How about that Apple dropping $3.2bn on an overrated headphone company? 

Tyler wrote: How about that Apple dropping $3.2bn on an overrated headphone company?

Something to do with the Mog streaming service perhaps, but it *is* weird. Well, it's 2% of their total.

I believe they were buying Dr. Dre. 

Apple buys people, generally speaking.  They are very concerned about having high-quality, in fact top, elite-quality people.  Apple considers themselves highly resource-constrained.  How so, having billions of dollars?  The resource they are constrained by is people.

For some reason, they consider Dr. Dre, and/or perhaps others on his team, to be A-list player(s).

LC475 wrote: For some reason, they consider Dr. Dre, and/or perhaps others on his team, to be A-list player(s).

I'd say its more that they want Millenial diversity catchet.  Millenials are suckers for marketing fiction on top of being among the world's most guillible consumers.