It seems times never change. For example, whenever the topic I write about investing arises, the response from many naysayers can be broken down into three categories.
The first is the comment: “Wonderful, do you have any useful tips?” Of course, there is often a degree of sarcasm dripping from these words.
To use an equine metaphor, which I know well, you can lead a horse to water, but you cannot make it drink. Therefore, my answer is one word … no.
Then there are those who look at me askance, their faces whitening as they rant about how Wall Street is similar to Las Vegas and am I aware of the volatility on Wall Street?
No sir, they say, their money stays in CDs. Tactfully, I don’t point out that after taxes and inflation the return is probably negative.
Finally, there are the well-meaning people who have blindly invested in a myriad of investments and are eager to tell you about their insight in this regard.
Unfortunately, their investment knowledge has often been learned from a glossy marketing brochure or a compelling business presentation. The hype for these investments is always high, but not necessarily the performance.
Investing means sometimes having to face a rant of subjective and often incorrect statements from supposed experts.
For example, I have to take umbrage at some comments made a year ago when Jony Ive, one of the great design geniuses at Apple, left to pursue other opportunities. The question was, how could Apple create tracking products without Ive?
A brokerage firm went so far as to lower Apple shares to “sell” them from “neutrals,” and said it expected the company to face a “fundamental deterioration” in markets. next six to 12 months.
Do you remember that when the company first introduced the Apple Watch, its reception was far from overwhelming. Yes, it took a few revisions, but today look around at all the people who wear one.
The idea that Apple has exhausted its potential pipeline reminds me of the oft-quoted tidbit that stated that in 1843 the government was suggested to shut down the patent office because it was believed that anything that could be invented the had been.
The statement is a myth, despite its popularity. In his 1843 report to Congress, the then Commissioner of the Patent Office, Henry L. Ellsworth, included the following comment: “The advancement of the arts from year to year imposes our credulity and seems to presage the the time has come when human improvement must come to an end. “
Ellsworth never intended to disparage the patent office. In addition, the number of patents increased from 435 in 1837 to 25,527 in 1899. In one year between 1898 and 1899, there was an increase of about 3,000.
Of course, Napoleon would have said to Robert Fulton: “What sir, you would sail a ship against the wind and currents by lighting a bonfire under its decks? I beg your pardon. I have no time. to listen to such nonsense. “
As I have written in the past, Apple has been declared dead 68 times since 1995, according to the Mac Observer commenting on the Apple Death Knell Counter indicator.
Two years ago, I noted that a German investment firm had set a price target for Apple of $ 60, with concerns that Apple’s financial model was too dependent on the iPhone. He predicted that the company’s shares would drop more than 50%.
Such are the diviners of Wall Street. Apple’s incredible past success has translated into brand recognition, engaging products and a loyal consumer base willing to pay a premium. At the same time, the market expects, and even demands, all companies to be both innovative and profitable.
You can write to Lauren Rudd at [email protected] or call her at 941-706-3449. For the reviews, visit RuddInternational.com.