Although buy-and-hold AAPL longs saw a solid return, many other investors got the shaft.
NEW YORK (TheStreet) -- Yes, Apple (NASDAQ:AAPL) stock is up roughly 26% year to date, but not every Apple shareholder had the same experience in 2012.
You can say that about most stocks. No doubt. The timing of your buys and sells dictates how much of a time period's gain or loss you realize. If you bought and sold at the right times, you could have made significant profits on even a beaten-down name such as Pandora (NYSE:P) as it got whacked around for myriad reasons, including Apple radio rumors.
So a year-to-date gain or loss doesn't say much about individual positions.
In Apple's case, the stock may be up 26% year to date, but it's down 9% over the last month, 26% over the last three months and 11% over the last six months.
If you bought at the beginning of the year, you're up 26%. If you bought in middle or end of September, you're down by that much. However, if you bought at the beginning of the year and sold at the top in September ($705.07), you banked a whopping 71% profit.
Sometimes you need to see the numbers to put a stock, particularly a closely followed and volatile one like AAPL, in the proper context.
For some longs who bought in 2012, this has been an amazing year. For others, not so much. And that's really the biggest stock market-related tragedy of 2012.
It's tragic because AAPL crashes and -- the media loves saying this -- "enters bear market territory" from time to time for all the wrong reasons. It's the perfect example of the emotional inanity that rules the stock market. That makes it a place people fear. And that's too bad because, even in this circus, there's money to be made in equities. In fact, all else being equal, there's no better place to park your cash if you have discipline and a long-term time horizon.
AAPL should be the stock that you could have held throughout 2012 and never worried about. If you did hold, you made money. Yes, that's true. But many investors certainly experienced anxiety as this thing bounced around.
If you decided to buy as AAPL was surging, you absolutely should not be down 26% today. No way. Flat maybe. Biding your time in the high $600s would be acceptable, but faced with the reality of dropping below $500 a share, that's tragic.
The following three stories take you through what a joke the last part of the year has been:
"Apple Selloff About A Year Too Soon"
"Investor Alert: Wall Street Analysts Screwing You on Apple"
"Apple Analysts Should Be Ashamed of Themselves This Morning"
What started as little more than capital gains tax-related selling snowballed, thanks to a financial media searching for answers and looking to the wrong people -- Wall Street analysts -- for them.
A few of these guys took the long-term cautious/bearish AAPL case I had been writing about since Steve Jobs died and bastardized it. They applied it to the here and now -- a period without credible challenges to Apple's dominance -- instead of telling it like it is: Apple is selling iPad minis like hot cakes. Apple, according to Kantar Worldpanel Com Tech, owns 53.3% of the domestic smartphone market over the most recent 12 weeks. That tells somebody who reads at the third grade-level that the iPhone 5 rules over an Android operating system spread across hardware makers. Even Apple's missteps turn positive. As Technology Tell reports, since the Google (NASDAQ:GOOG) Maps app launched for iOS 6, adoption of Apple's mobile operating system has increased 29%.
You absolutely should be concerned that the culture at Apple has eroded and will continue to do so post-Steve Jobs. That some of the cracks we've seen this year mean something. But, again, it's too soon to do anything about it, particularly sell or not buy AAPL stock. That's all perfect-world stuff though.
Sadly, we live in a world where Wall Street analysts dominate the conversation. They took reasonable, tax-associated profit-taking and turned it into 2012's most irrational stock market tragedy.
Down with these guys.
-- Written by Rocco Pendola in Santa Monica, Calif.