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URL:  https://boards.fool.com/the-pc-market-is-a-commodity-market-while-dell-10205847.aspx

Subject:  Re: Narrowing our List - DELL Date:  6/14/1998  4:12 PM
Author:  AngryCandy Number:  260 of 8329

The PC market is a commodity market. While DELL looks very good for the next year or so there is currently no reason to believe that someone else might knock them down a peg in the next five to ten years.
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The "PC is a commodity" argument has been around from Day 1 and hasn't hurt DELL a bit. Intel sells a commodity as well yet is clearly a Cash King.

You say "there is currently no reason to believe that someone else might knock them down a peg". I agree - this sounds like a recommendation, not a criticism. If there's a typo there and you meant that you expect someone will, in fact, knock them down a peg, well, again, the same argument goes for Intel, Cisco and even MSFT.

If you put DELL in the CK port you are, indeed, betting they're going to continue to gain market share. I think that's a very safe bet but obviously it's not a guarantee - no investment is.


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If growth is the primary criteria why not SAP instead? It has a growth rate where 40% is a bad year
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Well, why not PSFT instead? No reason to go to the bench when you can play your starters. Not that I think either would qualify as a Cash Kinger - too much of a niche business that may not even exist in 5 years.

-chris

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