No Apple in the portfolio — and definitely not Google
Read the article or watch the video on Youtube: https://youtu.be/6D-PAafiT9E
Google with its new holding company Alphabet is in all the newspapers because it was briefly larger than Apple. This makes me ask if this is a good time to invest in Alphabet. “Never change a winning horse,” may apply to the Internet giant now.
That’s when it pays to look at the facts. Apple’s Value Rating from Obermatt is only 42 of 100 points (http://www.obermatt.com/en/stocks/apple-aapl/stock-research.html). Even Google is better with 47 points (http://www.obermatt.com/en/stocks/google-googl/stock-research.html). By the way: Facebook doesn’t have a single Value-Point. (http://www.obermatt.com/en/stocks/facebook-fb/stock-research.html). It’s all hot air only. You are getting a lot more substance for your money with Microsoft which has a Value Rating of 85 (http://www.obermatt.com/en/stocks/microsoft-msft/stock-research.html).
And that’s where the problem starts. In high tech, investors only get value when the company fell out of favour. This is why HTC had a high value rank of 94 for several years (http://www.obermatt.com/en/stocks/htc-2498-tw/stock-research.html). But this wasn’t really a signal to buy because the stock price actually fell during that time.
It is almost impossible to assess high tech stocks. Who would have guessed that MySpace will be surpassed by Facebook? Rupert Murdoch and his highly qualified investment bankers would have never expected this outcome when they paid half a billion dollar in 2005. 2005? That’s not very long ago and the company has almost entirely disappeared.
The same could happen to Google, Facebook or Apple. This is why Obermatt CEO Dr. Hermann J. Stern doesn’t invest in technology shares — no matter how much he likes the products. Stern makes a clear distinction between the products that he consumes and the companies where he invests. Stern wants his retirement savings to be based on proven investments and not on rosy speculations about the future.
Subscribe to the Obermatt top 10 alert and receive an email right when new top 10 stocks are available here: http://www.obermatt.com/en/follow-us.html
Disclaimer of liability: Information is provided “as is” and solely for informational purposes, not for stock trading, stock recommendations or advice.