The founder betting it all on Apple and Wells Fargo:In 2017, Chewy co-founder Ryan Cohen sold his pet retailer for $3.35 billion. He took his share of the proceeds and plowed virtually all of it into just two stocks: Apple and Wells Fargo. This is the type of action that would make financial advisers cringe. “You need to have the temperament to block the noise,” he says. “Sometimes it feels like a roller coaster.” Here’s why Cohen swears by his unique investment approach.(Bloomberg) “When I find things I have a lot of conviction in, I go all-in.”
Read this story last week. Was surprised a guy with hundreds of millions would just buy 2 stocks. You would think he would get some top line hedgefund to manage his money and probably magically get him some hefty returns. His apple shares which were down greatly are finally making him a profit. Wonder how many Apple shares he owns.
How high can Apple's market cap go? If things do slow down that will have a long way to fall. There are way better stocks out there.
LOL Apple is steadily losing market share to Android worldwide and their flagship iphone 11 was a stillbirth. It is inferior in hardware+OS with double the price compared to the Android majors. Their latest marketing hook is one year free access to their exclusive flop entertainment that nobody wants. He should bought some commodity stocks as a long term bearish dollar bet.
When you have $3.35B, it really doesn't matter. Let's say he did 50/50, dividends alone would be enough to live. His combined yearly dividend payout was around $100M. Even if both WFC and AAPL goes to zero tomorrow, he won't be on welfare any time soon. I can live with only getting $100M a year. Can you?
And even if his portion of the proceed is a fraction of the $3.35B, let's say 25%, getting $25M dividend payout is enough for me to subsist.