Google is a great Company. Somehow I have still managed to lose money owning the stock the last few years. There are other great Companies…Intuit, Federal Express, Nike, Starbucks, Whole Foods, IBM to name a few. You should own great Companies. They are generally great stocks. You must prune and prune your portfolio until you own the great ones.
Apple is a ‘Magnificent’ Company.
Scott O’Neill of Investors Business Daily shared this chart that helps quantify the difference between great and magnificent:
A couple of fun facts:
1. Apple earned more money in the last quarter than the stock was worth 8 years ago (thanks Eddy Elfenbein)
2. Apple’s current cash level of $97+ billion is more than the MARKET CAPS of 474 S&P 500 companies! (thanks Bespoke)
Apple is not alone in it’s Magnificent’ execution and performance. Monster energy is a ‘Magnificent’ Company.
Monster ($MNST) is one of the great stocks of all time. IT’s market capitalization and earnings have both increased 200 times since going public. Earnings do matter.
On it’s way to ‘Magificent’ are Chipotles ($CMG) and LULU Lemon ($LULU). In the meantime, they are pretty damn great stocks.
You can get rich owning a basket of great stocks over a 10 year period, but you will get ‘RICHHHH’ finding one ‘Magnificent’ Company.
We are at 11 year highs in the Nasdaq for a bunch of reasons and none of them are because of a bubble.
Here is my ‘Momentum Monday’ that delves a little deeper and covers some more potential winners in this strong tape.
You would have taught that LULU Lemon ($LULU) would be a ‘Magnificent’ Company. Are you kidding me, YOGA CLOTHES… and it sells like crazy. There it goes, another company on my list of miss opportunities. Everyone have one of those I suppose but at least I saved myself with a few other compagnies. Not Magnificent ones but… ‘Great’ at least.
You are right about that Howard, Earnings do matter. It can be ignore on the short term but over a longer period, the market always pick it up.
The Nasdaq still has a long way to go before it regains all the ground lost since 2000 when it traded at 5000.