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Market analysis Score 35 Bullish

YCG’s Cyclical Buying Strategy in Apple Stock Yields Measurable Returns Amid Market Volatility

Mar 09, 2026 15:53 UTC
AAPL, CL=F, ^VIX
Medium term

YCG’s disciplined approach of acquiring Apple (AAPL) shares during periods of temporary profitability contraction has delivered strong long-term gains, outperforming broader market benchmarks. The strategy leveraged downturns in tech sector sentiment and elevated volatility to secure undervalued exposure.

  • YCG accumulated AAPL shares during three cyclical troughs between 2020 and 2024
  • Average entry price: $142.30 per share; current price: $344.70 (March 9, 2026)
  • AAPL returned 143% over the period, outperforming S&P 500’s 76%
  • Buy entries coincided with VIX above 30 and S&P 500 drawdowns exceeding 10%
  • Strategy emphasizes forward P/E and operating margin trends for timing
  • CL=F reached $98.60 in January 2022, impacting consumer discretionary demand

YCG executed its long-term investment thesis by accumulating Apple (AAPL) shares during three distinct cyclical troughs between 2020 and 2024, when the stock traded below its 50-week moving average and price-to-earnings ratio dipped below 18. These entry points coincided with broader market stress, including a spike in the CBOE Volatility Index (VIX) to 32.1 in Q1 2022 and a 12% drawdown in the S&P 500. The firm maintained position exposure through macroeconomic turbulence, including rising crude oil prices (CL=F: $98.60 per barrel in January 2022), which pressured consumer discretionary spending. The strategy’s effectiveness is reflected in cumulative returns: AAPL appreciated 143% from its lowest entry point in February 2022 to March 2026, significantly outpacing the S&P 500’s 76% return over the same period. YCG’s average cost basis during the three buy cycles was $142.30 per share, compared to the current price of $344.70 as of March 9, 2026. This performance underscores the value of contrarian positioning in cyclical technology stocks during periods of temporary earnings contraction. Market participants in the technology and consumer discretionary sectors have taken note, with similar contrarian strategies gaining traction among institutional investors. The approach has prompted increased attention to forward-looking P/E ratios and operating margin trends as leading indicators for cyclical entry points. The strategy remains sensitive to macroeconomic signals such as oil prices and volatility spikes, which continue to influence timing decisions.

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