Google, Inc. (GOOG)
Revenues - $30 billion
Net Income - $8.5 billion
Market cap - $205 billion
Employees - 31,353
Microsoft Corporation (MSFT)
Revenue - $67 billion
Net Income - $23.15 billion
Market Cap - $237 billion
Employees - 92,000
Google and Microsoft are very similar companies. They are both unoriginal. They both seem to be blind. They completely ignore the hardware side of the business and they 100% focus on software. Between them they share annual turnover of over $100 billion, they share profits of $30 billion and they have more than 100,000 people working for them on different projects/tasks every day. Yet, they are so unoriginal.
I have a problem with such tech stocks and I try to stay away from them. Because today you probably have 200 people in Google working on some project and 200 engineers in Microsoft working on another project, yet their future may depend on two college students in garage somewhere.
Google and Microsoft in my opinion are not smart enough to realize that if they want to protect themselves from garage-working college students, they need to produce hardware and software and they need to market their products and stand behind them. Ultimately, they will be better companies, and customers would benefit from their products, because they would simply be better products. Software needs a hardware to adapt to, you cannot think that one software can work perfectly on different hardwares, just like one type of engine cannot run on all cars.
Thinking works.
Damian Kosutich
Thursday, January 19, 2012
Apple, Inc - $400 billion mark
Yesterday, Apple stock traded at an intra-day high of $429.47 surpassing market cap mark of $400 billion.
$400 billion. August 1997 - 90 days from bankruptcy. January 2012 - $400 billion market cap. 15 years.
That is a fifth of human's life expectancy in developed world. So if you are 30 years old right now, by the time you are 45 you can also change the world, just like Mr. Jobs, if of course these are your ambitions.
This $400 billion mark is meaningless, it doesn't mean much to any of the Apple employees, it is not the reason why they will continue to make great products, it is just a reminder than in life anything is possible.
"Here is to the crazy ones" (Apple ad from 1997)
Is it worth $400 billion? Well, if somebody is willing to pay $400 billion for the whole business than yes. Yesterday many people bought Apple stock trading at $429. So if you bought one share you are also willing to pay $400 billion for the whole business provided you have the money, probably not. So how come almost 10 million shares were traded yesterday? Well, here we go again, if you notice craziness on the market, just follow it, because this is one place where money can be made after sanity kicks in again. I am not suggesting anything, but in my opinion, Apple has shown that in life everything is possible. From inevitable bankruptcy to the largest company in the world (August 2011) to $400 billion market cap (January 2012). Also, where great things happen, crazy people follow. So, - here is to the crazy ones.
Enjoy.
Damian Kosutich
$400 billion. August 1997 - 90 days from bankruptcy. January 2012 - $400 billion market cap. 15 years.
That is a fifth of human's life expectancy in developed world. So if you are 30 years old right now, by the time you are 45 you can also change the world, just like Mr. Jobs, if of course these are your ambitions.
This $400 billion mark is meaningless, it doesn't mean much to any of the Apple employees, it is not the reason why they will continue to make great products, it is just a reminder than in life anything is possible.
"Here is to the crazy ones" (Apple ad from 1997)
Is it worth $400 billion? Well, if somebody is willing to pay $400 billion for the whole business than yes. Yesterday many people bought Apple stock trading at $429. So if you bought one share you are also willing to pay $400 billion for the whole business provided you have the money, probably not. So how come almost 10 million shares were traded yesterday? Well, here we go again, if you notice craziness on the market, just follow it, because this is one place where money can be made after sanity kicks in again. I am not suggesting anything, but in my opinion, Apple has shown that in life everything is possible. From inevitable bankruptcy to the largest company in the world (August 2011) to $400 billion market cap (January 2012). Also, where great things happen, crazy people follow. So, - here is to the crazy ones.
Enjoy.
Damian Kosutich
Wednesday, January 18, 2012
Apple, Inc.
Today, Apple's market capitalization is $395 billion.
Apple is $157 billion worth more than Microsoft.
On August 6 1997 Microsoft invested $150 million into Apple to save the company from bankruptcy. This was only 15 years ago. In 15 years Apple went from a market cap of $6 billion to $395 billion. That is a 6500% increase in 15 years. In investing this is almost a dream. Well, not quite. It seems somebody has been following the trends.
Kingdom Holding, owned by Prince Alwaleed bin Talal of Saudi Arabia invested $115 million into Apple Computer, Inc. They acquired 5% of the company by April 1997. Price Alwaleed later said the main reason why he invested into Apple is because Steve Jobs' return to Apple.
Apple is not an example of value investing, it is not even a growth investing, since the company used to be big and than almost bankrupt. This is person investing, the reason why the Prince (not the singer) invested is because he believed Steve Jobs will do an amazing job. He did surprise us all.
Find a company that makes great products, even if they are not on the market, just learn about them, follow the trends, read about their individuals, because it is all about the people.
Be original.
Apple is $157 billion worth more than Microsoft.
On August 6 1997 Microsoft invested $150 million into Apple to save the company from bankruptcy. This was only 15 years ago. In 15 years Apple went from a market cap of $6 billion to $395 billion. That is a 6500% increase in 15 years. In investing this is almost a dream. Well, not quite. It seems somebody has been following the trends.
Kingdom Holding, owned by Prince Alwaleed bin Talal of Saudi Arabia invested $115 million into Apple Computer, Inc. They acquired 5% of the company by April 1997. Price Alwaleed later said the main reason why he invested into Apple is because Steve Jobs' return to Apple.
Apple is not an example of value investing, it is not even a growth investing, since the company used to be big and than almost bankrupt. This is person investing, the reason why the Prince (not the singer) invested is because he believed Steve Jobs will do an amazing job. He did surprise us all.
Find a company that makes great products, even if they are not on the market, just learn about them, follow the trends, read about their individuals, because it is all about the people.
Be original.
Subscribe to:
Posts (Atom)