Jim Cramer on Apple analysts Huberty, Hall and Sacconaghi (video)

Plus a fun clip of Josh Brown (age 44) telling his generation why they should not be rooting for all-time highs.

“All we’re doing,” he says, “is taking boomers out of their stocks at the best price possible.

Cue CNBC’s “Jim Cramer says own Apple, don’t trade it” which aired Thursday: (Skip the first two minutes. The fun starts at 2:10.)

My take: As a boomer, I sometimes have to be reminded that young investors are never going to get a chance to buy Apple at $9 a share, like some of the regulars at the bar.

11 Comments

  1. Bart Yee said:
    Heh, when I first saw this and listened to Cramer’s take on Rod and Toni, I laughed out loud. I hope everyone gets a chuckle out of it. And he’s absolutely right about Huberty.

    4
    December 10, 2021
    • Greg Lippert said:
      +1 that was awesome!

      4
      December 10, 2021
  2. Jim Fournier said:
    Opportune buying is not the only way to achieve an enviable share price. The 7-way and 4-way splits got our effective price into single digits. I expect that Tim will continue to employ that strategy.

    3
    December 10, 2021
  3. Robert Paul Leitao said:
    I’m going to make a timely reference to today’s economic discussions. Maybe it’s time for some of these analysts to finally admit Apple’s success isn’t “transitory.” The company’s success really is down right “persistent.”

    2
    December 10, 2021
  4. Bart Yee said:
    PED said “My take: As a boomer, I sometimes have to be reminded that young investors are never going to get a chance to buy Apple at $9 a share, like some of the regulars at the bar.”

    If one had bought 1 $656 AAPL share just before the 7:1 split on May 31, the basis for that share would now be $23.40 now and the invested value of the 28 shares to $18,368, exclusive of dividends. So plenty of people who bought shares during the run from 2010-2014 have a basis below $20, some way below. So plenty of millennials and Gen X are in this ownership population (it was only 12 years ago and later).

    If someone bought 1 AAPL share today at $175, AAPL would have to split 4:1 and 4:1 again to bring these shares down to about $11/share and the invested value to $2800. Could it happen again? Seeing as Apple decided to split 4:1 August 2020 and shares then were ~$500, if we have “decent” returns of 33%/year (today’s YTD 2021 returns) annual share appreciation from today, we could see another split in about 3 years, circa 2024-2025 when shares hit $400+. Of course, if Apple were to announce or successfully introduce a new and profitable product or service or market (what might that be???) then share appreciation would move up smartly more quickly.

    My SWAG guess is that today’s Millenial/Gen Y, Gen Z and Gen Alpha $175 AAPL share buyers will see their basis drop to under $11 within 10 years with two 4:1 splits by sometime in 2032. Hopefully we will all be here to congratulate these now newbies, and future AAPL 3.0 veterans.

    6
    December 10, 2021

Leave a Reply