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Value Investing Professor Aswath Damodaran Says Apple Is a Momentum Play and Why He Sold the Stock

April 18, 2012 | About:
Dheeraj Grover

Dheeraj Grover

Aswath Damodaran, a professor of finance at New York University, and author of well-known value investing book, "The Little Book of Valuation" was on Bloomberg along with Lawrence Haverty, a portfolio manager at GAMCO Investors Inc., to talk about the performance of Apple Inc. (AAPL)'s stock. They speak with Betty Liu on Bloomberg Television's "In the Loop." (Source: Bloomberg)

Aswath spoke about how he has been a long-term investor of Apple (from $5 to $600, wow!) and why he has decided to finally sell the Apple stock. On the other side of the argument is Lawrence Haverty of GAMCO investors who thinks that Apple is undervalued.

Aswath also believes that Apple is undervalued but the only reason he has sold the stock is that it has become a momentum play with all kind of investors holding the stock. He supported his argument citing what happened with Apple stock yesterday when it fell approximately 5% without any real news about the company.

Here is the video:

About the author:

Dheeraj Grover
I am an individual investor with deep interest in the field of value investing. My ideas and thinking is inspired by highly respected value investors like Ben Graham, Warren Buffett, Walter Schloss, Bill Ruane and Tweedy Browne

Rating: 3.0/5 (8 votes)


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