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My Lunch with Frank Quattrone post on Wednesday created much comment. I guess the one that made me think most was ‘Why wasn’t IBM on the list of incumbents?” The comment went on to suggest (surely not?) that it had been omitted because it rather went against the point Frank was trying to make.
I checked and back on 31st Oct 2007, IBM’s share price was $113 – it is now 76% higher at $199. Indeed a much better performance than Google, Qualcomm and VMWare which Frank had put in the Challengers list. So I think our commenter has a point!Image may be NSFW.
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As readers know, Apple was the star performer in that period – up 3-fold in the period. Interestingly The Times today highlighted the amazing ‘contribution’ that Apple had made since Oct 2007. Apple is now 16.85% of the NASDAQ and 3.8% of the S&P. The S&P is up 9.6% since Oct 2007 but if you exclude Apple, it would be down 5.5%.
We have long warned of the over dominance of certain stocks on the indices even here in the UK. Autonomy in the FTSE SCS index, ARM in the FTSE Hardware index etc. But these were less than Apple in NASDAQ.
If Apple sneezes, NASDAQ will catch pneumonia with ‘contagion’ in every other index around the world. Be warned.
