Or: Gloating, Part 2
A year ago today, I issued my only “buy” call ever, on Apple. How did I do?
Since June 20, 2011, Apple’s share price is up 83%, for a market cap increase of over $250 billion (not including a shareholder dividend of nearly $10 billion). That’s over a quarter of a trillion dollars of value creation – all during the year Steve Jobs died, Apple was raked over the coals for labor practices in China, Samsung rose to become the world’s #1 smartphone seller, and legitimate iPad competitors from Amazon (and now Microsoft) finally emerged.
Again, not too shabby.
To be sure, it’s a small sample size, but allow me to make a general conjecture about investing. Charles Munger said it’s better to make a few big bets than many little ones. I’d add that it’s better to understand a little about finance, but a lot about strategy and innovation, than the reverse.
Disclaimer: I own a single share of AAPL.