Why Apple is cheap

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8 pointsxenophanes3 comments

Like in the startup world, it is all about the team. Who now has a better team than Apple? They've demonstrated they can make good decisions, grow revenue, etc., better than anyone else.

That's why I invest in Apple. A great team does great things. Dediu's point that the market as a whole has consistently underestimated the company is well made.

I hate to sound harsh but the problem with this idea is that Apples' 'team' was one guy, a guy who died. Everyone else just took orders from Jobs, the dictator 'visionary'. I find it hard to believe that everyone else on the 'team' absorbed the Jobsian way and will perpetuate it. It will die with Jobs, at best the 'team' will endlessly try to mimic it and thus fail to achieve it. Apple will continue to dominate for the next 3-6 years and then decay. I would stay away from this stock from a long term perspective, short and mid term its probably a winner.

Time will tell. Pretty safe prediction that they may decay in six years though.

If they grew at the rate they have over the last six years for the next six years, you can do the math.

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