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am I the only one who considers the markets obsession of endless growth as absurd? Both sides in the smart phone market have been growing thru beating down the

by Aloha 11y ago

am I the only one who considers the markets obsession of endless growth as absurd? Both sides in the smart phone market have been growing thru beating down the weaker competitors then just by market growth, the smart phone market in developed countries is largely reaching saturation - where is the place to grow now? I work in a market where volume matters little - margin is the key - my division for example produces a product with a gross margin of ~50%

forrestthewoods 11y ago
If I were an investor in your company and I got a healthy dividend from that gross margin then that'd be great. But public stocks largely don't pay significant dividend and are valued off of growth. Growth expectations which are already factored into the price, whatever it may be.
BinaryIdiot 11y ago
> am I the only one who considers the markets obsession of endless growth as absurd? Likely not however we're only talking stock price here and the only thing that matters in investing in stocks in finding your way back to a return which typically happens when stock prices go up and you can sell higher or you get a dividend. Since Apple doesn't do the latter it has to do the former which means requires constantly growing the company. So while in logic the endless growth is a bit absurd in the stock market it's either that or dividends (and even dividends may not keep it raising; all depends on how they're structured).
- toephu2 11y ago
  Actually AAPL starting issuing dividends in 2012 giving in to pressure from shareholders.
  - BinaryIdiot 11y ago
    Oh look at that you're right. Damn.
- morgante 11y ago
  > constantly growing the company. Not necessarily. A stock represents the market's valuation of a company, including its future earnings. Maybe a plateau to growth is already factored into the market's valuation of Apple (arguably, you'd have to be an idiot to think that Apple's cash cow will grow forever and magically never reach saturation). The stock's value could continue to hold steady and even grow while the company's revenue declines if that decline is less than expected.

by Aloha 11y ago

forrestthewoods 11y ago

If I were an investor in your company and I got a healthy dividend from that gross margin then that'd be great. But public stocks largely don't pay significant dividend and are valued off of growth. Growth expectations which are already factored into the price, whatever it may be.

BinaryIdiot 11y ago

> am I the only one who considers the markets obsession of endless growth as absurd? Likely not however we're only talking stock price here and the only thing that matters in investing in stocks in finding your way back to a return which typically happens when stock prices go up and you can sell higher or you get a dividend. Since Apple doesn't do the latter it has to do the former which means requires constantly growing the company. So while in logic the endless growth is a bit absurd in the stock market it's either that or dividends (and even dividends may not keep it raising; all depends on how they're structured).

toephu2 11y ago
Actually AAPL starting issuing dividends in 2012 giving in to pressure from shareholders.
- BinaryIdiot 11y ago
  Oh look at that you're right. Damn.
morgante 11y ago
> constantly growing the company. Not necessarily. A stock represents the market's valuation of a company, including its future earnings. Maybe a plateau to growth is already factored into the market's valuation of Apple (arguably, you'd have to be an idiot to think that Apple's cash cow will grow forever and magically never reach saturation). The stock's value could continue to hold steady and even grow while the company's revenue declines if that decline is less than expected.