Value Investing 1010 – Market irrationality

Being a value financier is understanding the marketplace is illogical.

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1010 – Market irrationality

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9 Comments

  1. The first one is not growing.
    The second one is of much better quality. And it is growing.
    20 years from now apple will be around. The first one I’m not so sure. I can’t even pronounce it.😂

  2. Apple can get a new product right any year and geow revenue by 50%. Maybe next year VR, maybe VR in 7 years. But it will grow. Because it’s a marvelous company. Its culture and company philosophy that matters. You can’t go wrong with Apple.

    1. Apple is a marvelous company as you say, I fully agree.

      Growth has slowed significantly, and it’s difficult to grow revenue as you get bigger. Nvidia is sort of an anomaly here…

      There is only one way you can go wrong with Apple, and that is paying too much. 36 times for a company growing at mid to high single digits (Apple’s official guidance I believe) is a tough sell to a value investor.

      Between holding Apple and holding cash earning 4.5%, I would hold cash. So would Warren Buffett it seems.

    2. There might not even be a 1% chance that what youre saying is true. 50% increase means $200B in revenue. As far as I know, no company has ever even come remotely close to that, including in a 3 or 5 year stretch for a new product category. What youre talking about is total wishful thinking.

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