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Strategies & Market Trends : Value Investing

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To: Ed Pirtle who wrote (7182)5/17/1999 11:56:00 PM
From: Michael Burry  Read Replies (3) of 75857
It seems to me that AAPL is incredibly undervalued

I don't know you at all, and while I agree with the endpoint of your analysis, I don't agree with the means with which you got there. I like AAPL because it IMO is now a bona fide value stock on an enterprise value/ratio basis, and is generating tons of cash. I see loads of opportunity, an extremely strong balance sheet, and little downside. And I see a huge contrarian play because a generation of security analysts have been trained to think that whatever is wrong with this world, AAPL is a part of it.

What the price will do in the next 12 months, I don't know. Whether day traders will ever mature, I don't know. Whether value will even become more important over the next year, I don't know. I just see an absolute value in AAPL at recent prices.

I do feel the greatest margin of safety was back at 34 when no one ever thought it would move, but that there remains a margin of safety for longer-term holders.

For other tech value, I'm now a proud shareholder in Oracle at 24 3/8. 30X earnings, so you gotta understand the business. After consulting with some techie friends and family and doing some DD, I finally do. It goes in the long-term hold, Buffett-like stock for me. Pairs to my AAPL and my APCC as Buffett-like tech stock long-term holds.

OK, Jim, now you can call the end of the bull market. I've gone into tech.

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