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Stocks B / Berkshire Hathaway
|Subject: Re: Way OT: Are computer manufacturers dying?||Date: 10/3/2012 5:22 PM|
|Author: mungofitch||Number: 194627 of 227685|
All thoughts are welcome.
Well, I don't really think of HP as a PC company.
They make lots of them, but it's inconsequential to their earnings.
That rather raises the question of what they do do, but I don't think they're too sure either.
Be that as it may, my main insight is that in any industry there are some people in
the broad supply chain and ecosystem that make good money, and others that don't.
In the PC business the general rule has long been that the company that
assembles the box and puts their name on the front doesn't make money.
Dell was a shining exception for a number of years, but perhaps no longer,
and perhaps the rule is pretty much universal now.
But that doesn't mean that other firms in the industry can't and don't do well.
Look for the guys with the ROE without leverage. High, and not falling on trend.
You'll find them even in the air transport industry—just not at the airlines themselves.
In computing, it seems to me that Intel and the disc makers are [still] good at capturing value.
System integration consultants have traditionally done very well, from EDS back when to IBM now.
A very interesting article on the factors that sometimes prevent the most visible
piece of an industry from capturing much of the value, with the example of airlines.
Highly recommended reading.
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