Apple and Google investors, are you emotional??

We know that there are plenty of investors out there. And for anyone who doesn't know much about stock investment, all they have in mind is that stock is risky, people commit suicide or go bankrupt after owing so much money in stock....pile of bullshits and skeptical hypocrites...~

Before we even decide to say that, think about what kind of investors these people were?? They are financially uneducated, greedy and emotional investors....

Maybe I can share events that happened this week. We have this two real BIG companies, Apple and Google, hail a champion in New York Stock Exchange. Big players, high earnings yield, profits soaring.

As Apple released their own smartphone, the iPhone, it brought so much hype into the world. People everywhere with different skin colors, holding the same smartphone. Apple got so much demand on iPhone that they are in fact worried of not being able to produce as much as demand.
When they introduced iPad, it revolutionize the tech era....and now everyone is talking about tablet PC, competitors like Samsung and Motorola come into picture.

As for Google, we all go to the site everyday~ They dominate by being the world's most recognized search engine, earning high profits through adclicks and having a big base to continue to boost their growth. Although Google is trading at more than $600, analyst still consider their share DARN CHEAP! 

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Nonetheless, lets see what happened this week...

CEO of Apple, Steve Jobs reported to the company on 16th Jan that he will be on sick leave, however he will still be involving in major decisions. His role will be replaced by COO Tim Cook for now. And what happened to the share price? It finally took first hard hit after few months. The share dropped from $348 to $326...investors who had invested on Tuesday was disappointed with such fall.

Just so happen that this week, on Thursday, Google announced the change of CEO.The former CEO Eric Schmidt stepped down and remained as an executive chairman, and Larry Page is taking over the business as the new CEO.
Share price dropped tremendously even before the announcement. But hardest hit was a day after the announcement where it dropped -$14.94  to $611.78! Holy cow, whoever bought it that day is losing money like nobody's business.

So what do you see here? If you are an emotional investor, then stock is scary. If it drops, it really kill you man! Imagine you put your hard earned $100,000 into Google last 2 days? You lose thousands of dollars for goodness sake!

But if you are a smart investor, what should you do? If I have a lot of money, I will put in more! Google and Apple are giving huge discount now! People are skeptical, they are fearful, they are emotional. When they saw sudden changes in the management they got panic and sell off whatever remains that they have.

Not considering the real fundamental behind the company. Can't we see, despite the changing of CEO doesnt change the fact that the company is still dominating the market NOW? Does changing of CEOs make a company go bankrupt instantly?

I see stock investment as long term, if a company is prominent enough, they will continue to soar despite some headline news on and off the hook. I see them both as big players that will continue to move on. Stock is a cycle, they go up and down, but for Google and Apple, shares will drop eventually, but not now!


*Note
Please bear in mind, before invest, consider the risks and reasons to invest. I did my homework and understand what the company is doing before giving my opinion. So doesn't mean that I am a fortune teller saying stock will rise and it will do so instantly.