To protect his anonymity, I will give him a pseudonym. Let's call him DB.
DB is playing with his retirement, with almost $300,000 held in an IRA. He was in Apple for a while in the 1990s, but bailed before Jobs' return, and has since watched the shares run and run and run.
So, with Apple at $500, he buys 10 shares. And watches them zoom to $600. So he buys 10 more. It rises to nearly $700, then falls below $600 again. OK, he thinks, 10 more. Now he has over 6% of his entire stake in one stock, he has no capital gains left and when the shares fall again, to a little over $540, he asks, do I buy again?Lots of investors, large and small, face the same question. With Apple's market cap still north of $500 billion, we're all in. (If your portfolio doesn't include AAPL at this point, you're practically shorting it.) But if everyone's in, where is the impetus for further gains, even though its current PE is under 12.5? This is the problem. Let's start by looking at the downside. CEO Tim Cook is no Steve Jobs, and he just launched a purge of his executive suite. The "new iPad" was a disappointment, losing big hunks of market share to Android-based devices. (You say " Google!" (GOOG - Get Report) the way Jerry Seinfeld would say
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