It was March 2013. The U.S. stock market was coming back strong from the great crisis, and the big bargains were disappearing as the market growth, but there was a big company that was definitely out of market favor and severely judged by investors, analysts and traders.
It was a company that changed the world but seemed in trouble because of the death of the founder and the lack of a major innovation since then. Continue Reading »
I think you have already figured out the company name ... Apple (AAPL).
In March 2013 I bought a bunch of shares of AAPL at ~440-450 $ / share ( ~64 $ / share split adjusted). The risk: I'm not a technology expert, and I know how fast technology can mutate. A technology company going out of favor could go from greatness to quite bankrupt (Nokia, BlackBerry docet)
So ... was Apple the new BlackBerry?
I'm not a technology expert, but I'm a curious guy who looks around trying to figure out what works and what doesn't. I found that Apple was different from any other PC/smartphone company. I found that Apple customers were and are different from other PC/smartphone company customers.
Looking around and talking with many Apple customers, I've found that Apple was more than a technology company. For the core of Apple customers, Apple is a strongly branded "lifestyle" status company .
The core Apple customers are not going to buy a smartphone, are directly going to buy an iPhone; are not going to buy a PC, but a Mac. To me, in this sense, it looks quite similar to Ferrari, Rolex and Hermes.
The core of Ferrari customers are simply going to buy a Ferrari , not a car , as the core of Hermes costumer are simply going to buy a birkin.
With that personal strategic confidence and safety in mind, I have started to look at the financial side.
Financial: cash is king