Caution on Apple stocks proves prescient

Caution on Apple stocks proves prescient

John appeared on CNBC's Squawk on the Street in April 2012 and, in what was a controversial call at the time, publicly cautioned those who were considering investing new money in Apple Inc. (AAPL) to think twice because of a huge amount of hype, euphoria and speculative flows prior to the iPad 3 launch.

Even with the most optimistic assumptions, the economics of the iPad did not justify the increase in the stock price, which had added almost $130 billion in value prior to his call. The stock price subsequently fell 40% after John's caution.

Apple stock price chart

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