Fundamental Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Fundamental Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: bruwin who wrote (2926)	4/19/2013 10:55:50 PM
From: Shane M	1 Recommendation Read Replies (1) of 4719

I've looked back at AAPL also to see where I went wrong on the pick. I think part of the issue for me was I had difficulty understanding it on the way up. All of the new gadgets didn't appeal to me a whole lot, and the closed business model doesn't appeal to me - but what did appeal to me was the power of the brand - and the legions of fans who had to have the next AAPL product. The movement of the stock price was vexing to me - seemingly moving in various directions for reasons I couldn't understand. While I thought the valuation was very attractive, the price movements were just all over the place - incomprehensible. Even now I wonder if sentiment drives the stock more than the company underneath. That said, I think the "sheen" of AAPL started coming off when the Galaxy phone ads started making fun of people having to stand in lines for phones ("you'd think they'd have an express line") or portraying the phones as uncool ("I love my S3, I'm saving a spot in line for my parents who want an iphone") or questioning the coolness of the product ("my S3 already has a bigger screen" or "wow - awesome - they put a new jack on the iphone that costs how much?"). At some point it seems the AAPL brand was tarnished in that regard making Apple fans feel taken advantage of. Much of the pricing power Apple has is due to coolness, and that is now much more in question imho. Something can get so popular that it becomes cool not to like it. But in the end I realize I'm going to be wrong on some, and at the time I could see reasons for continued Apple dominance. Now I'm seeing other players responding strongly. One question I'm left with is why did I prefer AAPL over GOOG at the time?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next