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Patience\ Virtue  

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  • Apple's Loser Strategy [View article]
    I would imagine that Sony, while not a current example, is a past example. I'd have to look at the numbers but I would imagine you could find a 10 if not 15 year period where they held margins but were eventually killed by execution...among other problems. But the thing is, when consumer electronics push the envelope into fashion, you start to believe that Apple can pull it off. At this point, there are clearly aspects of fashion in the way people behave with their phone.

    Blackberry is an interesting example of the Innovator's Dilemma and certainly supports your argument.
    Sep 12, 2013. 06:09 PM | 1 Like Like |Link to Comment
  • Apple's Loser Strategy [View article]
    Not sure that I agree with that comment since it throws branding out the window...not to mention all sorts of other aspects like sales channels and promotion...
    Sep 12, 2013. 06:03 PM | Likes Like |Link to Comment
  • Apple - A Good Price, Just Not A Value Investment [View article]
    Valuable points...thank you for participating.
    Dec 17, 2012. 10:08 AM | Likes Like |Link to Comment
  • Apple - A Good Price, Just Not A Value Investment [View article]
    Good point on the dividend yield on some sources.

    Comparison of Google to Apple is tricky though. Google makes money by sending people online, not directly from Android sales. I'm not sure how it is possible to say that now that Android has surpassed iOS in market share, it will slowly lose market share. Tablet domination maybe? If true however, I could certainly see price and earnings increasing for Apple. The fact that Google's earnings are valued at 2x Apple does not make Apple undervalued though. It just mean Google is potentially overvalued.
    Dec 17, 2012. 10:07 AM | Likes Like |Link to Comment
  • Apple - A Good Price, Just Not A Value Investment [View article]
    My point in the value investing section was to point out that when I look at Apple from an earnings stability point of view, it is hard to support it as a value investment. I wanted to take that one step further in other parts of the article however since I actually do believe it is selling at a good (if not great) price. The difference is semantics since value investing can mean something very specific (think Graham) or something generic (as in buying something at a good price). For me, I follow the specific train of thought when I break down a potential investment - and as I illustrated in this article, I feel like that method lets me down in this case.

    As for the assumption of zero growth with Apple, it is not difficult to imagine a situation where that is in fact the case. New products are difficult to launch successfully - especially when they do not fulfill some sort of physiological need in the consumer. Apple is at the tail end of the adoption curve with most of the products that have been launched in the last decade. If the next product fails, they will struggle to grow earnings.

    That being said though, I do not believe this will happen.
    Dec 17, 2012. 10:01 AM | Likes Like |Link to Comment
  • Apple - A Good Price, Just Not A Value Investment [View article]
    Apologies for the typo. The yield should be 2.07% instead of 2.7%. A correction has been filed.
    Dec 17, 2012. 09:53 AM | Likes Like |Link to Comment
  • Apple - A Good Price, Just Not A Value Investment [View article]
    Thanks for reading and sharing.
    Dec 17, 2012. 09:52 AM | Likes Like |Link to Comment
  • Apple - A Good Price, Just Not A Value Investment [View article]
    I am with you to a limited extent, especially at these prices for a buyback (although $50B is a bit high). The split may increase demand slightly but does nothing for the intrinsic value of the business.
    Dec 17, 2012. 09:52 AM | Likes Like |Link to Comment
  • Apple - A Good Price, Just Not A Value Investment [View article]
    For my part, I won't touch it over $500 and probably would even wait to see if I could enter closer to $450. It's at a reasonable price now but I like to build in as much of a safety factor as possible. Patience is the key.
    Dec 17, 2012. 09:49 AM | Likes Like |Link to Comment
  • Apple - A Good Price, Just Not A Value Investment [View article]
    Yeah, definitely a typo. I've submitted it for correction. Thanks!
    Dec 17, 2012. 09:45 AM | Likes Like |Link to Comment
  • Apple - A Good Price, Just Not A Value Investment [View article]
    Yeah, in re-reading that last sentence I feel like I wasn't as clear as I should have been. My intention was to say that in the short term, there's not a lot of momentum one way or the other. Clearly the stock does bounce up and down however.
    Dec 17, 2012. 09:44 AM | Likes Like |Link to Comment
  • Apple - A Good Price, Just Not A Value Investment [View article]
    Agreed, I believe the price is fairly good now...but I think it will also be better in the near future.
    Dec 17, 2012. 09:36 AM | Likes Like |Link to Comment
  • Apple - A Good Price, Just Not A Value Investment [View article]
    I think there's certainly a potential blockbuster product in there, I just wonder if pricepoint would kill it. How many people are willing to plunk down thousands of $'s for an AppleTV. That potential market size is nowhere near where they have had with iPod/iPhone/iPad.
    Dec 17, 2012. 09:35 AM | Likes Like |Link to Comment
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