I’m cool, hip, and better than you…I’m a Mac?
Well, my point here is to portray what Apple Inc. has been able to do with its brand. As the stock market makes its way down, this is the time to start scouting out for good future buys. The best thing about these market fire-sales is the ability to pick up cheap best-of-breed stocks. Nobody knows if right now is the right time to buy; however, it’s always good to know what you are going to buy when the time arrives.
One of my favorite stocks right now is Apple. Here are a few factors that contribute to its must-buy status (keeping in mind that I’m a PC guy):
Factor One: The cool, hip, innovative, stylish, better-than-you aura. It has to be acknowledged that Apple’s products are top-notch. However, not every company with top-notch products get as much publicity and praise as Apple. This is a result of their long-term marketing and brand construction.
Factor Two: When you attack an Apple product, you attack the Apple User. Apple has found itself in a unique position where its users have personally identified themselves with the company. Owning a Macbook or being a person who runs with an iPod has become a part of the person’s self-image. Therefore, when you attack the product, you end up attacking something that is part of that person. This leads to a very loyal base that will defend criticism of the company and promote its good quality; thus amplifying the positive aura.
Factor Three: Quality backs up the hype. Besides all the good marketing, Apple has been able to consistently deliver since 2001 or so when the iPod went blockbuster. It has managed to create iPods that make you want to buy a newer iPod every time a new version comes out. In sum, I believe we can trust Apple’s R&D to keep delivering.
So when you add everything up, you can see that Apple has the long-term potential to increase your wealth.
Lastly, if you care to take into account analyst estimates about Apple, it looks pretty positive. The stock is a strong buy and has a mean target estimate of $134 and medium target estimate of $125.
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