I’ve got a type. My favorite stocks have capitalized off the internet, tons of optionality and have reasonable valuations. Apple fit this perfectly. Apple entwined with my life and I Apple all day every day. I’m not afraid of mega caps (I’m long Amazon and Meta). Why don’t I own Apple?
Well, the first reason is probably that I’m stupid and wrong. The second reason is that I question how much optionality Apple really will take advantage of. No doubt, they have the opportunities. They have massive user bases they can easily leverage into new revenue streams. The problem? Despite the massive opportunity, Apple has blown so many of these chances. They just don’t have the focus. Opportunity after opportunity has been blown. From music to fitness to podcasts, Apple had the lead or massive opportunity. In the case of podcasts, Apple had a 10 plus year head start! Yet nothing ever came of most of these opportunities.
I’d rather choose a company with less optionality, a higher valuation, etc… if that means better execution. Maybe I’m dumb and just ignoring reality, but the execution beyond their core businesses has been lackluster at best. I don’t really care who you are, if you aren’t executing well.