Economics : Market Share VS Market Profit

“It is far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
—Warren Buffett

I want to talk with my friends here today about economics and good share stock buys.
Today we have two companies; one Apple and the other Samsung.

Samsung has 90% of the world’s phone market share but only 20% of the world’s phone profit share.
Samsung in my view is not a good company to buy shares of stock.

Apple has only 25% of the world’s phone market share, but commands an amazing 90% of the phone profit share, Apple does not sell anywhere near the number of phones of Samsung, Apple just clobbers Samsung in the area of profits as it relates to cell phones around the world.

A Samsung phone is made cheap and it’s cheap in cost; Apple on the other hand makes an expensive smart phone that will cost you a fortune to own; the phone is a symbol of the smart, the rich and the sexy.
Samsung should be a lesson in what is a good company to pick up stock or not; clearly Apple is a stock one should own.

The company is run by the smartest minds on the planet today.

Steve Jobs where ever he landed has got to have a very big smile on his face as I’m sure Apple stock holders are so used to.

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Economics- the branch of knowledge concerned with the production, consumption, and transfer of wealth.

Charles Micheaux
Atlanta, Georgia

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