If you thought that only apple products are pricey, you need to check its stock price too. I am not talking about valuations but if you look at the price alone, After falling to 212 $ on March 23rd 2020 due to Covid Crash, it bounced back sharply and hits all time closing high of 331.50 $. This is not a valuation analysis so have not taken any dividends, split or bonus. Just an analysis of how our mind reacts to this kind of news.
Common investor psychology is whenever a stock hits new high immediately we tend to think that we should have bought that stock instead of this or how lucky if we had bought this stock last month when it was trading at 250$ or few years back when it was trading at less than 100$. We will be sitting in huge profits when the whole world is suffering.
It’s our psychology, when we miss to buy we crib and think about opportunity loss but imagine if you had entered the stock on March 23rd or bought for 100$ in 2016 or few years before that, would you be still holding that stock. No, not everyone, only few would have that guts to ride volatility. Check the price chart of Apple.
Look at the draw-down’s, i am sure not many would have the patience to hold when the price corrects by 40 or 60% most of us would have sold before the crash or during that crash itself, why? Again, human psychology
Investing is simple, but not easy. Before getting into any equity product, you must research thoroughly, but once you identify and invest you must be ready to ride the volatility.
Happy Investing!
R♥Vi
Disclaimer: The information contained in this document is compiled from third party and publically available sources and is included for general information purposes only. Views expressed cannot be construed to be a decision to invest. The statements contained herein are based on current views and involve known and unknown risks and uncertainties. The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice.
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