Apple shares were also a top contributor to portfolio performance. The stock rallied as the Company's innovation and profitability profiles proved to be more than just alive and well, after another record launch of the latest iteration of its most profitable product, the iPhone. As we have previously pointed out, there are only two players that generate profitability in the smartphone market. Yet, Samsung and Apple each have very different strategies for competing in the market. As long as Apple maintains focused on a unique user-experience-driven innovation strategy – as opposed to a volume/cost minimization strategy espoused by Samsung – we expect Apple will continue generating disproportionate value for customers and shareholders. Given the run-up during the quarter, for many accounts, we trimmed our positions if they surpassed a 10% weighting, as this is the maximum weighting we are willing to carry a stock.
From David Rolfe's Wedgewood Partners third quarter 2013 commentary.