Apple Translates Well

by | Apr 20, 2012 | General

“I think there’s room to expand,”  Jim Cramer

Apple has 51 new stores on the drawing board, adding to the total of 361 stores worldwide. Of those 51 new locations, 28 are scheduled to open in China and Hong Kong. At the moment there is one Apple store in Hong Kong and 5 in mainland China.

Here are a couple of pictures from the Hong Kong store.

We remain heavily overweight in Apple stock. As long as it remains cheap relative to its earning power, we will maintain our position. Someday Apple stock will no longer be cheap and someday the company will stumble. But for now, we’ll enjoy the ride.

Why in Hong Kong?

I have been meeting here with local brokers, hedge fund managers, and investors, asking the perpetual questions: “Is China for real and is there trouble on the horizon”?

We need to know the answers to these questions mainly from a defensive standpoint. Our portfolios have benefitted tremendously from the growth in Asia and we think there’s more to come. But even companies not directly involved in Asia have been helped because Asian growth is boosting the entire world economy.

If Asia falters, as so many investors expect, then global growth, as well as US growth, will suffer. We need to avoid being surprised.

Best regards,

Daniel A. Ogden


Disclosure: Dock Street Asset Management, Inc. and our clients may own securities. This article is not intended to be used as investment advice.

Dock Street Asset Management, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission. You should not assume that any discussion or information contained in this letter serves as the receipt of, or as a substitute for, personalized investment advice from Dock Street Asset Management, Inc.

It is published solely for informational purposes and is not to be construed as a solicitation nor does it constitute advice, investment or otherwise.

To the extent that a reader has questions regarding the applicability of any specific issue discussed above to their individual situation, they are encouraged to consult with the professional advisor of their choosing.

A copy of our Form ADV Part II regarding our advisory services and fees is available upon request.

Our comments are an expression of opinion. While we believe our statements to be true, they always depend on the reliability of our own credible sources. Past performance is no guarantee of future returns.