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| The RSVX is our stock portfolio. We started the portfolio on January 2010 and we will measure the performance against the S & P 500. Click here to read more about the RSVX and the underlying stocks. |
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|   | Why Apple?
Apple designs, manufactures, and markets personal computers, portable digital music players, and mobile communication devices. The products are sold worldwide
Their main risk is that customers are not willing to buy their products anymore, because of competing products having a better value proposition or not being able to develop innovative new products. This could also result in the need to lower prices because of competition
Their balance sheet is strong and they have more than 24 billion in cash and marketable securities on their balance sheet. The return on equity is 27% and the return on assets is 14%.
Their net income / tot assets is about 0.30 and their net income/non current assets is 0.9.
These are all indications that Apple has a sustainable competitive advantage and they can increase revenue as the number of people around the world using computers is increasing.
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