(CNNMoney) – Is it time to sell Apple shares? Most small investors say: Not at all!
Carl Icahn, the risk fund mogul, sold all of Apple's shares at a very low price last week, but small investors will maintain their loyalty to the endearing company.
"Why would someone in their right mind sell Apple?" Asks Robert Ostrowski of Virginia, United States. He believes that what Icahn did is a trick and is quick to recite the many attractions of Apple:
1. It is reasonably cheap: the future price-benefit ratio is 11, which is low compared to that of 18 of the S&P 500 companies.
2. It offers good dividends of 2.4%, better than most technology companies.
3. It has 200,000 million dollars (about 3.4 billion pesos) in cash.
4. It is repurchasing shares.
5. It has “updates and new ideas in process”.
6. It has great growth potential in India.
Apple has the most popular actions
Apple has, by far, the most popular stocks among individual investors. It is popular in all age groups, from teenagers to retirees. Many people bought when the shares were cheap in the early 2000s or after the death of Steve Jobs in 2011. They are long-term investors who have earned thousands of dollars (some have earned up to a million) thanks to their investment in Apple .
However, stocks have collapsed this year. They have fallen 10% throughout 2016. They fell dramatically after the company released its worst quarterly results in April in more than a decade. The sale of iPhones fell for the first time in history. However, small investors will not give up.
CNNMoney has kept in touch with several "common people" who have invested over the years. In an informal survey conducted in the United States this week, almost 85% said they had not sold any portion of their shareholding over the past year. That statement is backed by information from Openfolio, a social application for investors that has 65,000 members. Openfolio has not registered a recent decline in ownership of Apple shares.
Here are some of the comments from people who have invested in Apple, even those who gave up.
Why I will not sell
"I'll keep them and I'm not interested in selling them," said Ryan Walker of Austin, Texas. "If you invest in Apple, you expect that successful product that appears to arrive every five years or more."
“I have increased my participation in the past 30 days. I think the company's foundations have not changed. When the ‘s’ models go on sale, which happens every two years, I imagine that consumers do not buy as many phones as it is the same model as last year. I hope that a remodeled iPhone 7 convinces customers to update this year. Therefore, Apple's earnings should increase considerably in the last two quarters of this year, ”said Rich Stauffer of White Plains, New York. He also notes that Icahn sold his Netflix shares before they reached a record high.
“What Mr. Icahn does with his Apple actions does not influence me. I still believe in Apple and its products. It is a great company and has recovered from rumors and other turbulent situations. I think this period is an opportunity to buy. As an investor, what causes me the most frustration is that people sell short. They make long-term investments difficult, ”said Kevin Lee of Parker, Colorado.
“Yes, I still have my Apple shares. Carl Icahn does not affect my posture. Most people are still in love with Apple products and demand will always exceed a man's opinion of the company. Apple has to solve certain things, but I think they will succeed, ”said Kenya Onyango of Virginia.
Why did i sell
“I sold, but not because of Carl Icahn. I sold at the end of December after having them for five years. I saved some cash and waited for Amazon to go down. And what a good maneuver. I sold all Amazon shares this week. I invested everything in Alibaba. We'll see, ”said Josh Blake of Los Angeles, California.
“I sold the day the Apple Watch came out. Thank God! I don't see them making real innovations. I was smarter than Carl Icahn and sold my shares before him, ”said Chris Hennessy of Maryland.