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> you own a piece of something that is continuously producing value for people. People will only pay for the next Apple product as long as they believe it prov

by Strom 6y ago

> you own a piece of something that is continuously producing value for people. People will only pay for the next Apple product as long as they believe it provides value to them. It's all the same. Perception is king.

Grustaf 6y ago
Over a billion people use Apple products, it's an extremely solid business. You can't compare that to a speculative bubble. Tulips were also very expensive once.
- machinebun 6y ago
  True, but when you own a part of Apple you also have to have faith that your shares won't be diluted to nothing via new stock offerings (which numerous companies have done in the past). So while there is intrinsic value in the shares, some of that is still based on faith (if Apple doubled their outstanding shares overnight, the value of yours would go down).
  - chii 6y ago
    > you also have to have faith that your shares won't be diluted to nothing via new stock offerings if the existing majority shareholders chose to do this, then it will happen, but otherwise, this can't happen. And i don't see a situation where the existing shareholders would willingly choose to do this dilution for no reason.
  - Grustaf 6y ago
    No that is not how it works. In order to double the number of shares they’d need to issue and sell more shares, meaning that they would increase their cash balance, and hence overall value, by 2.5 trillion. So issuing more shares would not change the value of existing shares, at least in the short term. Never mind the fact that the shareholders would have to make this decision, and that Apple has long been doing the exact opposite.
- Strom 6y ago
  > Over a billion people use Apple products That is not true. There are only 1.5 billion active Apple devices. I myself own 4 of those. Everyone else I know that has an Apple device also has multiple. I'm pretty sure the average Apple customer owns more than 1.5 devices. Thus there can't be over a billion of these people.

by Strom 6y ago

Grustaf 6y ago

Over a billion people use Apple products, it's an extremely solid business. You can't compare that to a speculative bubble. Tulips were also very expensive once.

machinebun 6y ago
True, but when you own a part of Apple you also have to have faith that your shares won't be diluted to nothing via new stock offerings (which numerous companies have done in the past). So while there is intrinsic value in the shares, some of that is still based on faith (if Apple doubled their outstanding shares overnight, the value of yours would go down).
- chii 6y ago
  > you also have to have faith that your shares won't be diluted to nothing via new stock offerings if the existing majority shareholders chose to do this, then it will happen, but otherwise, this can't happen. And i don't see a situation where the existing shareholders would willingly choose to do this dilution for no reason.
- Grustaf 6y ago
  No that is not how it works. In order to double the number of shares they’d need to issue and sell more shares, meaning that they would increase their cash balance, and hence overall value, by 2.5 trillion. So issuing more shares would not change the value of existing shares, at least in the short term. Never mind the fact that the shareholders would have to make this decision, and that Apple has long been doing the exact opposite.
Strom 6y ago
> Over a billion people use Apple products That is not true. There are only 1.5 billion active Apple devices. I myself own 4 of those. Everyone else I know that has an Apple device also has multiple. I'm pretty sure the average Apple customer owns more than 1.5 devices. Thus there can't be over a billion of these people.