Looking at QUALCOMM, Inc. (NASDAQ:QCOM)and Nvidia Corporation (NASDAQ:NVDA), they are pretty consistent when it comes to growing their bottom lines. They only thing they seem to be lacking would be a home run. In QUALCOMM, Inc. (NASDAQ:QCOM)’s case, it is kind of hard to garner a lot of excitement for processors. But their established track record of good processors should continue to lead to demand from their many costumers for the foreseeable future.
For Nvidia Corporation (NASDAQ:NVDA), this Project Shield might actually be their home run. PC gaming is currently a $20 billion industry, and still growing–and mobile gaming is expected to triple by 2015. Nvidia Corporation (NASDAQ:NVDA) may very well be able to capture the hearts of gaming fans with this device that is expected to be released in the 2nd quarter. Home run or not, Nvidia Corporation (NASDAQ:NVDA) has been growing both the top and bottom lines consistently for a while now. If Project Shield is a home run product, it just compliments an already good company.
Sometimes I am the first to jump on the BlackBerry bear wagon. But when you zoom way out, you are reminded of BlackBerry’s past. This was a company that at one time was firing on all cylinders. Only recently have they struggled with their products and profits. Many are saying that the Z10 is BlackBerry’s savior. That might be a little exaggerated, but reviews range from good to glowing. Perhaps the Z10 does signal that the once great BlackBerry still has what it takes.
The Babe Ruth of Investing
Not only is Babe Ruth currently #3 all-time in home runs, he is also #10 in batting average. El Bambino didn’t just hit it deep, he consistently performed at the plate. It’s little secret that Apple Inc. (NASDAQ:AAPL) is my Babe Ruth of investing.
This is the company who gave us the iPod–not the first mp3 player, but definitely the one that started a movement. This is the company that gave us iTunes, when critics said no one would pay to download songs when they could be pirated just as easily online. And for the out-of-the-park home run, they gave us the iPad, which has changed the way people compute. That’s a very relevant batting average.
I could sight some of the many stats you’ll find in any Apple article, but I will instead just focus on Apple’s brilliant financial position. Critics will quickly point out that the majority of Apple’s $137 billion in cash is overseas, which is true enough. However, even if you apply the 35% repatriation tax, Apple is still sitting on nearly $90 billion in cash. That’s more than the market cap of BlackBerry, Sony Corporation (ADR) (NYSE:SNE), and Nvidia Corporation (NASDAQ:NVDA) combined.
It is this fantastic history of Apple – home of a series of home run products and the financial backing of colossal proportions – that leads me to believe that the next big thing is right around the corner.
Bergen vs Babe
It is very exciting when new products are released, and many investors believe that one product can make a good investment. But we are not investing in products; we are investing in the companies behind the products.
Bergen’s home run wasn’t enough to change his career. He was still a terrible batter. In like manner, one product offering doesn’t change whether a company is a buy or a sell. One home run isn’t enough to make me invest in Bill Bergen.
With Apple currently trading almost 40% off from September highs, an increasing dividend, and a massive share buyback plan, you might want to go ahead and pick up shares before the Babe Ruth of the tech sector gets up to bat again.
The article Invest in Companies, Not Products originally appeared on Fool.com and is written by Jon Quast.
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