“With the General Motors filing for bankruptcy today, that left a vacancy in one of the most exclusive and prestigious clubs in all of finance. And I would have made the case that Apple Inc. ought to fill GM’s slot on the Dow Jones Industrial Average,” Jim Goldman writes for CNBC.
MacDailyNews Take: Here’s a portion of what we wrote two months, and many billions of dollars, ago on March 30, 2009: “Here’s an idea: Why not just stop throwing more billions of taxpayers’ dollars down this particular rathole and instead let these bloated messes proceed normally into bankruptcy, restructure, shed their unsustainable smothering labor (current and legacy) costs, and reemerge with at least some chance of competing in a global industry?”
Goldman continues, “The Cisco Systems choice is a good one, but hardly a bold one. Still, when you add Cisco to HP and Intel, and to a lesser extent Microsoft, Silicon Valley is represented rather nicely on the average. Apple, however, would have been a better choice.”
“Apple could have addressed several key issues for the Dow folks: most notably, there’s momentum, and track record, and profits, and vision, and excitement behind this company. The truth is that the Dow folks want their index to go up, and there’s probably no better company out there that will make that happen. Cisco shares to say the least have traded in a decidedly more narrow range than Apple’s,” Goldman writes.
“Apple offers truly a different option than the other tech companies already on board, thanks to its compelling diversification,” Goldman writes. “To say Apple is merely another hardware maker, or just a gadget company, or simply another consumer electronics company, misses the point of why this company is truly extraordinary: its vertically integrated Macs, iPods, iPhones, iTunes and App Store is a remarkable economic and creative model the likes of which investors — and the tech community — have never seen before.”
Full article – recommended – here.
MacDailyNews Take: We agree. Apple would have been a better choice to replace Government Motors on the Dow.