NEW YORK ( TheStreet) -- First, I'm told cost basis doesn't matter.
) soars 40% on Reed Hastings' latest smoke and mirrors show.
Then I watch
(AAPL - Get Report)
crash 10% on
one of the best earnings reports in the history of the world
All of this, only to wake up to
the following Tweet
from the Bob Costas of our time, the great Carl Quintanilla of
Am I living in one of the alternate realities I listen to Elliott Smith sing about or the ones I read about in a Haruki Murakami or William Gibson novel?
Before I continue, I must do something so many writers fail to do before they go on a rant. Two things actually: 1) I just warned you I'm going on a rant; and 2) I must provide context around those 140 characters.
David Rolfe, quoted by Carl in the Tweet, is the CIO at Wedgewood Partners. His firm is long AAPL. And, based on the interview he did with
Melissa Lee this morning, he's clearly still bullish.
watch the interview
. I just want to make sure nobody perceives me as attacking Rolfe because I agree with and appreciate most of what he said to Melissa.
I appreciate that he made no bones about it -- he and his firm got AAPL wrong. I also agree with his general consensus that this whole episode is absurd. I especially enjoyed his snark about dimming the lights, pulling back the CapEx and returning all of the cash to shareholders because, based on sentiment, Apple is a dying company. I like the way he dressed. I love his hair. And I could sign my name to a majority of his act. No doubt.
That said, I disagree with two points he made. And I feel like I have to point them out because, while they might work for Wedgewood Partners, they absolutely
work for long-term retail investors who are dog-housed if they lose money, let alone their life savings.
First, he took exception to a comment he heard Jim Cramer make that valuation doesn't matter. Rolfe said it will one day. I cannot speak for Cramer, however, speaking for myself, that's a dangerous way to proceed.