You might have heard analysts and investors saying the U.S. stock market is in the “late innings” of the bull cycle.
“Apple is in the process of trying to establish recurring revenue streams and going form a hardware company to a software and subscriptions company. They have a long way to go, but obviously the most profitable company in the world has the potential to do it,” Plumb said. “The dialogue in the fall was the U.S. going into recession,” Plumb said. “But, now, we look at a company with an 8 or 9 price-to-earnings ratio and think it is pretty darn attractive.”
When asked about the potential for Visa and Mastercard to be threatened by competing transaction processors and new technology over the long term, he said that the companies, with their bank partners, “offer us a limit on our liability if there is fraud or hacking. That is huge and still a significant backbone.”
Plumb emphasized that “Netflix continues to have negative cash flow.” Disney’s strong financial position means it can eventually “become a meaningful player” in the disruptive internet entertainment distribution industry, he said.
Decades of Financial Quants, Data Scientist and HFT making pennies and nickels... at the speed of light = 'haves' and 'have nots'