by Russ Kaplan, editor Heartland Adviser
is a good case for the role psychology plays in investments, and this
is when my B.A. and M.A. in Sociology comes in very handy.
Meanwhile, Freeport-McMoRan Copper & Gold (FCX)
is a classic illustration of the difference between short-term
thinking and long-term thinking, or making a quick buck vs. making a
In 2012, Apple broke the $700 level and analysts were saying it was the greatest thing since sliced bread.
a 25% correction, analysts are now saying it is mature company past its
prime. Honestly, has the company really changed in such a short time,
or is this another speculative algorithm from the Quantitative Analysts?
[Related -Sobering Quarter and Guidance for Long-Time Apple Bull]
all my measures of value, Apple is a good buy. Is price/earnings ratio
is 11, which is less than the total market, and about one half of
Apple's normal p/e ratio.
Yes, there is constant change in the
computer industry, but Apple, with its management skills and huge trove
of cash, should be able to adapt to this in its usual seamless manner.
Apple pays a dividend of about 2%, so if you are looking solely for income this is not a stock for you.
Copper & Gold recently fell sharply on the news that it was going
to spend $9 billion to purchase two oil companies. These acquisitions
are an attempt to expand their business.
Was this a good move?
If you were looking towards the next quarter's earnings you are
probably would not be interested in investing in this stock.
[Related -What does Istanbul have to do with AAPL?]
let's take a long-term investment view of the company. What
Freeport-McMoRan has done is diversified its business from being solely
into mining, to a mining and oil exploration.
you want a quick profit, you should avoid this stock. But if you want a
good investment for the long run, then Freeport-McMoran is for you.