Some of the early shareholders of Apple Computer probably felt that way and it may explain, in part, the rush to get a piece of Google when it went public last year.
Both companies have great stories to tell – stories that are still being written. In Apple’s case, it has been a roller coaster ride to say the least.
Users love the computer, but at times have hated the stock. The company has reinvented itself so many times it is hard to know what they are. In recent years, they have been very successful and stockholders have loved it.
Successful stock
Google is one of many high-tech, Internet companies that proved the new e-commerce model could be turned into a cash machine. A great many more dot.com wonders left investors holding worthless stock and wondering what happened.Google’s story is as appealing as Apple’s in many ways, although much shorter. Will it have a story 10 years from now?
Falling in love with a company’s story is a dangerous way to invest your money. There are dozens of companies with compelling stories that don’t survive because their business model is fundamentally flawed or the management team can’t pull it off or both.
It takes much more than a compelling idea to succeed in business. It takes a company with founders and management committed to make the business successful if there is any hope of survival.
Great Stories
While Apple, Google and others have great stories to tell, they also have hours and days and months and years of hard work to get and stay where they are today.If you find a company with a great story, such as a genius founder, innovative product, great market and so on, look for a level of commitment that drives successful businesses. That’s where you want to buy stock.
