Apple Inc.’s (NASDAQ:AAPL) Road To Wealth Creation

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Growth + Strong Economic Performance = Excellent Returns

In the Wealth Creation chart provided below you will see Apple Inc.’s (NASDAQ:AAPL) cyclical economic performance and sluggish growth from 1996 to 2003 and the mediocre subsequent returns during that time period. After 2001, Apple Inc. improved its product offerings with amazing innovations such as the iPod and iTunes and began to drastically improve their economic performance when the iPod sales took off in 2004 while they gained 70% of the digital music player market. Apple followed a Wealth Creating Strategy perfectly from 2004 to present day continuing to improve their already profitable economic performance while at the same time growing their business. Apple is the perfect example of the market rewarding a company with a management team following a Wealth Creation Strategy as you can see by their excellent returns from 2004 to today.

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One important thing to note is that great companies do not always make great investments opportunities. AFG likes to find quality companies that have reasonable expectations priced into their stock price. Be on the lookout next week for an analysis of the expectations currently embedded in Apple Inc.’s stock price and their likelihood of meeting those expectations.