Apple Inc. (AAPL) May Be “Obsolete” in 2-3 Years: Pedro De Noronha

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Apple Inc. (NASDAQ:AAPL) is not a stock Pedro De Noronha of Noster Capital invests in because he said in a recent interview on CNBC that he does not know where the company will be in the future.

In fact, the Noster Capital managing director ventured that Apple Inc. (NASDAQ:AAPL) may become obsolete in two to three years.

Apple, is Apple a good stock to buy, Pedro De Noronha,

De Noronha was told that he may be missing on opportunities as every CEO the hosts have had in the program make it appear that there is a special game being played in the technology industry and that there is a bunch of money being made especially in developments in the Internet of Things. He responded saying:

“I don’t disagree with you. The only problem I have is, I’m a value investor and I’m a medium- to long-term investor. I need to know where a company is going to be in five to ten years. I don’t know where these companies [are going to be]. I mean, look at Apple, a company that we all admire. I love Apple. I don’t own its shares but I own a lot of their products. I don’t know where they are going to be in three years.”

Furthermore, De Noronha went on to explain why Apple Inc. (NASDAQ:AAPL) and similar companies in the tech industry are not companies he has invested in. He said:

“It’s a very competitive landscape. They might become obsolete in two to three years as we’ve seen dozens and dozens of technology companies. So as an investor who’s a value investor, the first thing you need to [do]is to make sure that you can, with a certain degree of confidence, estimate where that company is going to be in five to ten years. I have no clue where these companies are going to be.”

Watch the video below where De Noronha talked about Netflix, Inc. (NASDAQ:NFLX) after Apple Inc. (NASDAQ:AAPL).

Disclosure: None

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9 Comments

  1. What a moron………I suppose te internet will be gone too????
    Or do we have to wait for Al Gore to die first; since he thinks e invented it.
    What a joke you both are

  2. Gosh! What a moron! would like to see his portfolio today. I would wager that most of them would be gone in less than 3 years.

  3. Surprising comments, and amazingly short-sightedness. He says he doesn’t know where Apple will be in 5-10 years so he can’t invest in them. He can’t know where the stock market will be in 5-10 years either (or tomorrow for that matter) so he should probably find another line of work…

    Less sarcastically, I get his point, to a degree. Things change rapidly in tech and sometimes in unpredictable ways. However, tech is going to be here forever, and a company like Apple is big enough to adapt to whatever changes come along. IBM started making tabulating machines (and clocks, weigh scales…) and they’re still here. Some companies are easier to foresee their future product lines with some degree of certainty, tech companies aren’t that easy. But major tech companies with good strategies and thoughtful management teams, they’re likely to be around long-term.

  4. I wonder WHO he thinks is going to come along and bump Apple off its perch? Samsung? Microsoft? (Ha!), Amazon? Blackberry? The only company that regularly obsoletes Apple’s own products is … Apple itself. And I’d like to see his portfolio too. I’d bet it’s full of utility companies. & bonds.

  5. Jay in Austin on

    Hey, how much would you pay me to write something that’s both backed and corroborated by facts and figures (and not some wild-eyed, blue-sky guesses, speculations, deadline-driven, and utterly uninformed fortune cookie slips) … ??? Or would you rather stick with the ooga-booga pronunciations and chants from “Solon Harmony B. Dolor?”

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