From Cramer’s “The Tale of My Apple Watch” posted Wednesday on Real Money:
Yesterday someone stole my watch.
I happened to have walked out to accompany my wife, Lisa, to the grocery store two blocks away and when I came home it wasn’t on my arm… Lisa saw how distraught I was and came downstairs to an obviously disturbed husband… and while I was prattling on about how angry I was — My Apple Watch — she reached underneath where she was sitting, and… said “this Apple watch?” My heart stopped racing, something it would have measured, and I received the lecture I deserved.
Now I want to give you a lecture someone deserves about Apple (AAPL) and why, beyond the beyond-despair fury of the stolen watch, I hope she and others learn about how much Apple means to people and why it’s worth owning and not trading.
About two weeks ago, March 30 to be exact, the very smart analyst from Bernstein, Toni Sacconaghi, was on CNBC being asked about whether Tesla (TSLA), off 15%, or Apple, down nearly 10%, were worth holding on to…
“For Apple I’m not sure there’s a catalyst in the next six months,” he said. “It had a great run last year. The challenge is that its valuation is at six or seven year highs and perhaps more importantly there is not a real catalyst.” He then traced out all of the good news that you got last year and how it would now be up against difficult comparisons.
Should you be angry at Toni if you sold? Absolutely not. You should be angry at yourself for thinking that you could somehow get out and then get back in again six months later. We don’t know why Apple’s has been rallying. We almost never do. But it’s precisely because of this very clinically dismissive call that I keep saying own it, don’t trade it…
Now, you may ask, how could I know more about Apple’s stock than one of the best analysts on Wall Street. Me, who covers hundreds, no thousands of stocks, and he a specialist, who covers the important techs?
Simple. It’s the watch. You see, I can’t live without it.
My take: That’s the Sacconaghi conundrum… so smart and yet so clueless.