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Go find me a 'best in class' product that has sustained that position without growth.
by jshzglr 4y ago
Go find me a 'best in class' product that has sustained that position without growth.
- mcphage 4y agoBugatti?
- deleted 4y ago[deleted]
- Tsiklon 4y agoBugatti can only exist in it's current position because it is the halo marque of the Volkswagen group, it is almost certainly a company that loses money given the extremely limited market to which they target and the amount of investment and development that goes into their products. I think it's reasonable to think that the various bankruptcies of the prior companies which bore the name are emblematic of it being unable to exist by itself. EDIT: I've just realised that VW spun off Bugatti - my comment is no longer valid.
- jshzglr 4y agoBugatti sells less than 100 vehicles per year.
- mcphage 4y agoThat sure sounds like a “best in class” company without growth to me!
- jshzglr 4y agoThat's all a growth-less company can be. A simple niche, with a very specific audience that knows exactly what they want. It's the exception that makes the point. You can't apply that to a company like Apple.
- selectodude 4y agoWell that's not entirely true. AT&T is basically a zero-growth company as well. And they trade at a P/E of 6.7. A similar valuation for a zero-growth Apple would be about $40/share.
- renewiltord 4y agoI think anyone who would accept the statement "It is good that there are perpetually growing companies" will also accept the statement "It is good that there are perpetually growing companies and exclusive-luxury-segment non-growing companies".
- mcphage 4y agoYeah, you’re probably right.