Tippet, >>>I don't believe it either, but I have been surpised at how high INTC could run while the PC stocks stand still. It doesn't make any sense.<<<
I think it was Peter Lynch who advised that if I couldn't explain my investment to a twelve year old - I shouldn't be investing in it. Well, here goes (please don't make fun of me - I'm kind of sincere about this):
Investing in Intel is like investing in Coca Cola. Imagine the microprocessor as if it were the syrup and the box makers are the bottlers. Further, if you can imagine:
You don't have Pepsi, Seven Up, Schweppes, or Doctor Pepper to compete with - your competition is more like those people that sell a Howdy Doodie Cola. You also get to change the rules of the game - your competitiors are not allowed to come up with new flavors - they can only copy the new flavors that you come up with every 18 mos. or so.
Of course you crank out new and better tasting flavors every 18 mos or so and you mass produce it and distribute it so efficiently that your competiors have a tough time to compete with you for the little market share that you can't handle.
Oh, another difference is that instead of sugared water that people don't absolutely have to drink, your product has to be purchased by practically everyone.
If you are a lawyer - you can't exist without one. In fact you can't go to law school now a days without one. And, maybe someday - no school kid can go to school anywhere in the world without one.
And, soon, you can't get your mail if you don't own one of these things - and, maybe you can't, someday, go into business or watch tv without one of these things.
Anyhow, you get the drift.
Sincerely,
Mary
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