Patience pays off for Apple investors with all-time closing high

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Last night Apple's share price hit an all-time closing high of $133.29. Yet just nine months ago the share price troughed near $90.

At the time I wrote that Apple's share price has been under pressure, but we think its value remains intact, and with patience investors should be well rewarded for owning the stock

Indeed, such patient investors, including clients of the Montaka and Montgomery Global funds, are being well rewarded for their investment in Apple.

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The run up in the stock since its bottom in May represents a wonderful 48% gain and puts the value of the company at about $700 billion (the market cap has increased by around $25 billion per month!).

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While Apple's business and management have continued to do what they do - namely designing and producing great iPhones and offering services on top of them - the market's sentiment toward Apple has changed dramatically.

Last year newspaper headlines and broker notices talked about declining iPhone sales. Today's Wall Street Journal summed up a contrasting mood that now surrounds the company:

"...investors bet that the 10th-anniversary iPhone expected later this year will return the world's most valuable company [Apple] to renewed momentum..."

Share prices are often like a pendulum, swinging back and forth about a business's fundamental value.

Investors in Apple stock are being rewarded for their patience by holding on as the share price pendulum swings back from unjustifiably low levels.

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Roger Montgomery is founder, chairman and chief investment officer of Montgomery Investment Management. Following a successful career as an analyst and public company chairman, Roger published the first edition of his stock market guide, Value.able, in 2010, becoming an Australian best seller in just 16 weeks. He holds a Bachelor of Commerce and is a senior fellow of the Financial Institute of Australasia.