Tuesday, May 28, 2024
HomeTechThe Two-Tech Tango: How Scott Galloway's Bets on Apple and Amazon Reinforce...

The Two-Tech Tango: How Scott Galloway’s Bets on Apple and Amazon Reinforce the Gospel of Buffett-Style Investing

If you’re even remotely plugged into the finance and tech world, you’ve probably heard of Scott Galloway—NYU Stern’s marketing professor, entrepreneur, and podcast host extraordinaire. This guy made a killing by buying into Apple and Amazon back in 2009, and there’s a ton to learn from his investment philosophy. No, he didn’t achieve these gains through daily trading or hot stock tips. Galloway’s secret sauce? Timeless Warren Buffett-style investing. Let’s dive in.

The Power of Patience

Galloway’s mantra is simple yet effective: “I invested in good companies and then I didn’t trade.” Seems almost too easy, right? Well, that straightforward strategy paid off. Both his Apple and Amazon shares have skyrocketed, by 30x and 50x respectively since his initial investment. For context, this implies he nabbed Apple for under $4 a share and Amazon for under $5, both split-adjusted, back when 4K TVs were just a tech nerd’s dream. Today, these titans boast stock prices of $189 and $138 respectively, with market caps that can make even the most seasoned investor’s jaw drop.

The Buffett Touch

Of course, Galloway is borrowing a page or two from Warren Buffett’s playbook. Berkshire Hathaway’s “Oracle of Omaha” has long been a proponent of buy-and-hold investing. Case in point? Berkshire hasn’t touched its Coca-Cola and American Express stakes since the ’90s, turning a $1.3 billion investment into a jaw-dropping $24 billion asset for each. And don’t forget the combined $1 billion in annual dividends.

The conglomerate’s position in Apple, a relatively recent addition spanning just seven years, has already tripled to over $170 billion. Yeah, you read that right.

Life Lessons from the Investment Greats

Galloway credits much of his success to three core principles he shares with Buffett. First, excel at something—anything—and make it your livelihood. Second, live below your means; it frees up capital for you to invest. This rings especially true for Buffett, a centibillionaire known for his frugal lifestyle and a knack for pooling capital to invest.

Apple: More than Just a Tech Stock

Digging a bit deeper into Apple’s allure, Galloway suggests it’s not just a tech stock but an “ultimate self-expressive benefit brand.” In layman’s terms, owning an Apple product is now a status symbol, a nod to personal wealth and creativity. This powerful brand identity makes Apple a prime candidate for long-term investment. Or as Galloway puts it, “It’s one of those stocks you gift at a bat mitzvah or nestle into your 401(k).”

Key Takeaways for Modern Investors

Here’s the distilled wisdom you can apply to your own investment journey:

  1. Don’t Underestimate Simplicity: Sometimes, the uncomplicated route—buy and hold—is the most effective.
  2. Pick Your Winners and Stick with Them: Jumping from stock to stock might seem exciting, but it rarely builds wealth like a focused, long-term strategy.
  3. Financial Discipline Pays Off: Live within or below your means to amass the capital needed for solid investment opportunities.

So, as you ponder your next investment move, consider the success stories of Scott Galloway and Warren Buffett. Their journeys provide compelling evidence that buy-and-hold investing in valuable companies can indeed be a highway to the financially promised land.

LATEST

EXPLORE