Why I Continue to Buy Apple Stock

Are you wondering when the Apple "bubble" will burst? Don't hold your breath!

I've been buying Apple shares for a long time, even at today's high prices. As the stock pushes ever upwards, I'll continue to buy on the dips. That's right! Each time the stock falls by 5%, I take the opportunity to buy more shares at a discount.

Below are some of the reasons why I continue to buy Apple (AAPL) stock:

1. As a programmer, computers are what I know. If you don't know what I'm talking about, read a Warren Buffett book. Buy only what you know!
2. Although Apple develops some nice software, they are fundamentally in the hardware business. This gives them a tremendous long-term advantage over software companies, such as Google. The "barrier-to-entry" is much higher for hardware than it is for software. Millions of geeks worldwide are trying to create the next Google, but how many people do you know who are trying to create the next Apple? Google buyers beware.
   
3. Apple is currently under-valued because of the "scared of big numbers" effect. Investors often get scared when a stock rises above $150, $200, or $300. They say things like, "I'd never pay such a high price for shares in any company." These people are missing the point. The price per share has nothing to do with it. If the stock split 2/1 tomorrow, the price would fall by half, and the number of shares would double.
   
4. Macs are making a comeback. Every programmer I know is in the process of switching to the Mac. In my years of experience, whenever there's a shift in the programmer population, the general public follows a few years later. If you want to know the future of the computer business, watch what the developers are doing.
5. Apple completely owns the platform. It's not like Windows, where Microsoft only makes a percentage of a new computer purchase. When you buy an Apple product, Steve Jobs takes control of your product experience. And people love Steve, so they willingly let him do this!
   
6. Apple is using their ownership of the platform to lock in customers for life. Just try playing your iTunes library on a non-iPod device. Or try using an iPhone/Safari app on a Motorola phone. It ain't gonna happen!
   
7. iPhone is just getting started. Apple's recently reported earnings growth was great, but it only included the very beginning of iPhone revenue. Just wait 'til the Canadians, French, Germans, Japanese, etc., start buying iPhones.