Matthew Waterman
2
All posts from Matthew Waterman
Matthew Waterman in Brand Power,

Yes, Of Course You Should Buy More Apple Shares

There's a special type of person that buys Apple products. If you're one of their customers you already understand what I'm talking about. For the rest of you, the thing to realize is that Apple customers are not entirely logical people. They love the Apple brand. Although the company pushes the envelope with the latest technology available for their products, that's never been the selling point. It's like some kind of cult or something. 

There's this ancient argument about buying Apple products, people will tell you that you can get the same parts in a PC at half the price, you can get a similar phone for a fraction of the cost, Alphabet's (GOOG) (GOOGL) Android OS / Microsoft (MSFT) Windows has more flexibility with software/hardware, etc., etc.

It doesn't matter. 

Apple customers want the Apple brand. They're weird like that. I can't explain it, I just know that it's true and it has been since I was a child. Your arguments will never convince them to switch brands. They will pay a premium every time for the latest thing. 

That's why with Apple missing earnings estimates, you should not worry. There is a limit of course to the growth of any company, and there are only a finite number of people who can buy their products. Do not worry. When Apple decides that they don't have room to grow their own product lines, they will expand by buying other companies and rebranding theirs. Beats by Dre, anyone?

The stock is only slightly above 10 times trailing earnings. It yields nearly 2% and just saw a dividend boost. Yes, you should own Apple stock. When I talk about "Brand Power", this is a company that has that. Don't question it.

You should never sell it if you can help it. The company's culture and customer fanaticism will never change.