Sorry Jurgis, by BNSF do you mean Burlington Northern Santa Fe? Apologies as not familiar with the short form version :S
In a way you are right, as the pace of change within the consumer discretionary industry is very quick...though I suspect if KO can successfully market their drinks as 'healthy' we will still an uptick in their sales : )
Re: INTC, I don't profess to know a whole lot about it...I began to get attracted by it due to their dividend growth...but if you take pc sales for example, the trend (according to Gartner anyway) has been going down in the past 2 years, so pc makers such as HPQ or DELL have definitely suffered...and this has carried along with it INTC...but similar to MSFT, INTC's processors are everywhere! I think the forecast for pc sales for 2012 is something like 300 million, and if INTC can maintain their market share of roughly 80% of pc processors, they can still milk it very well...at least for the next few years
But there is no denying that if they continue down the same path, they will suffer a death by a thousand cuts, being inflicted ever so slowly. I understand that they managed to corner the pc market when it was just starting out in the 1980s...so if they want to maintain the profitability of their business as a whole, a fraction of that previous innovation would propel them forward...
INTC is definitely still a great business and I would hesitate to buy this stock for a second (subject to availability of funds of course!) |
