Originally Posted by Blades
if were talking buy and sell stocks and you have lets say $5000 to put into stocks. (forgetting all the extra costs associated with a trade)
you buy apple at lets say $550 per share you can get what?
5000 / 550 = 9 shares
now lets say you sell at $600
600 x 9 = 5400 ... profit of $400
you buy facebook at $30
5000 / 30 = 166
now lets say you sell at $38
166 x 38 = 6308 .. profit of $1308
my point is you can make more money buy more shares of a different stock because of the amount of money you have to spend.
I see your logic if you have limited fund to invest but one should invest based on the evaluation of the stock as well as PE ratio not by how high the share price is.
Apple was trading at $702 on Sept 12 2012, it is now at $505 plus, so at this price, the PE is low and the valuation at this level is very reasonable, so is it a good price to buy or do you see it going below $500?
So, based on your logic, do you sell Apple to buy RIM or FB?, I personally think, it is a good move, just place a tight stop loss..