Apple Inc. (NASDAQ:AAPL) isn’t the growth stock it once was, but then no company can maintain a torrid rate of growth over decades and decades. The law of large numbers alone helps insure against that.
But AAPL stock doesn’t need to deliver the kind of returns it enjoyed during the heyday of the iPhone. It’s not like substantial revenue and profit gains are a thing of the past — they’re just more modest now. Equally important, at 13 times forward earnings, AAPL looks cheap.
Perhaps most important for the long haul, Apple is a cash machine with one of the most valuable brands in the world.
People like to point out that Amazon.com, Inc.(NASDAQ:AMZN) doesn’t care about generating profit in the here and now. That’s great, because it means AMZN is investing in the future. It’s refreshing to see a company that looks past quarter-to-quarter performance.
It’s also significant because AMZN, which already dominates in fast-growth e-commerce, is looking to take over so many other key industries of the future. From digital media to cloud-based services to the Internet of Things, AMZN is making big, credible bets all over the place.
It’s become somewhat fashionable to question whether Warren Buffett has lost his magic. Aside from the fact that the answer is no, Berkshire Hathaway Inc. (NYSE:BRK.B, NYSE:BRK:A) will be just fine even after the Oracle of Omaha is no longer with us.
BRK.B is essentially a collection of bedrock companies and investments. That’s a big part of why it has a long-term record of outperformance. Sure, there are times when it will lag the benchmark index, but as a collection of value stocks, it’s designed that way. The point is that it will beat the S&P 500 Index during the down times.
Even without Buffett, the company will remain faithful to its secret sauce. Cheap, quality assets will always be profitable in the long run.
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