Well-known value investing authority Professor Greenwald discusses his views on Apple (AAPL, Financial) and Amazon (AMZN, Financial). He thinks Apple can go the way of Sony or Nokia even if it is a profit leader at this point. He thinks Amazon is trading on vapor.
SUMMARY:
-- Apple is clearly, at the a moment, a huge profit-generating machine and is not overvalued.
-- The problem is that this profit machine is not going to last.
-- We don't know when it is going to happen, but whenever it happens it is going to happen very fast.
-- Look at what has happened to Nokia and Sony.
-- Discount the multiple to take into account the risk of obsolesense and Apple will not look that attractive.
Credit and Source: Motley Fool, Youtube
Here is the video of Greenwald on Apple:
Here is his video of Greenwald on Amazon:
SUMMARY:
-- Apple is clearly, at the a moment, a huge profit-generating machine and is not overvalued.
-- The problem is that this profit machine is not going to last.
-- We don't know when it is going to happen, but whenever it happens it is going to happen very fast.
-- Look at what has happened to Nokia and Sony.
-- Discount the multiple to take into account the risk of obsolesense and Apple will not look that attractive.
Credit and Source: Motley Fool, Youtube
Here is the video of Greenwald on Apple:
Here is his video of Greenwald on Amazon:
