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He could have bet on Apple purely on fundamentals that fit his thesis: well-known brand, moat/protected market, solid management, nothing complicated on the boo
by nikcub 10y ago
He could have bet on Apple purely on fundamentals that fit his thesis: well-known brand, moat/protected market, solid management, nothing complicated on the books, solid investor returns/dividends, 40% ROE, in a bit of a dip (both YTD and peak), low-ish PR PE P/FCFE, etc.
It can be evaluated as a value stock like many of his other investments rather than a crazy infinity/100+ PE stock that requires understanding if the tech is viable or not
- sliverstorm 10y agoMy knowledge of Buffett is that he always wants to understand the companies he invests in, on a much deeper level than fundamentals. From memory, a few of his early winners were found by touring the company's facilities and noticing the company's physical assets (minus debt of course) were worth much more than the market cap.
- threeseed 10y agoIf Apple continues to strategically invest in startups e.g. Didi then it could also be seen as a VC firm.