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Squilliam on 31 December 2011
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Aprisaiden said:
Squilliam said:
Why would you buy any of these stocks? Sony is practically junk bond status, Nintendo is a one trick pony and Microsoft's core business model is being threatened. Even if they manage to do particularly well as companies it doesn't mean that the stock price will continue to rise, a falling tide lowers all boats just as easily as a rising tide raises them.


Buying Microsofts stock at the moment makes no sense at the moment because there is no indication that it'll rise much over the next 5 years or so. 

As for SONY and Nintnendo -- well SONY's stock is an excellent high-rish high-reward option if your looking at possibily holding the stock for an extended period of time. The stock could drop futher and cause headaches for SONY or it become extremly valuble if SONY gets its act together and has a bit of luck.

With Nintendo it is all about the short to medium term -- the changes in share price based off Wii sales was amazing.(IIRC they were worth ~10,000 Yen during the GC era, ~70,000 yen in early 2008 and now its ~10,000 Yen again) Now it'll be interesting to see if WiiU can replicate it (on a smaller scale ofcourse).

There is a very real chance that Sony could go under in the next 10 years but with the level of competition they face in their core business and their vulnerability to financial shocks given their high debt load and lot financial rating it is a risk.

Nintendo are a one trick pony. Their 3DS is suffering from increased competition as both Vita and mobile phones/tablets for the games market.

There are better investments than all 3 of these companies.



Tease.