Blodget Thinks Buying Apple today would be an Investment of a Lifetime | Startup Meme - Technology Startup and Latest Tech News

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Nov 21 2008

Blodget Thinks Buying Apple today would be an Investment of a Lifetime

Bilal Hameed 

apple-logo1 Blodget Thinks Buying Apple today would be an Investment of a Lifetime

With the market taking its toll out of Apple’s share price, Henry Blodget thinks that in case you have the guts and of course cash to buy whole of Apple stocks at today’s $80 per share valuation – total value $52 billion, you would get your entire investment back in 7 years:

Let’s say Apple gets hit hard by the global economic collapse and free cash flow falls to $7 billion next year and stays there for the next decade. If you bought the whole company today, you would get your entire investment back in 7 years, and you would get all the cash Apple generated in perpetuity from therefor free.

Or let’s say it’s even worse than that. What if Apple’s free cash flow falls more than 30%, to $5 billion, and stays there for a decade. Then it would take you ten years to get your whole investment back, and you would get all the future cash the company generated from there for free.

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