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Marsico: Apple Will Be Slow-Growing for Near Term

The tech giant is lacking a high-impact product that would bring its shares back to the peak prices of 2012, says Marsico Capital CEO Tom Marsico.

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Karin Anderson: One last stock that would be great to talk would be Apple. It was the number-one stock for you for a long time, but interestingly, you started selling that last August. Talk about your rationale for the sale, and is it now interesting at these valuation levels?

Tom Marsico: When the stock was trading over $600, we thought that the geographic growth rate of the smartphone business at the high-end would slow and that Apple would finally come to meet with the penetration issue. As other companies caught up, as Samsung or HTC caught up with their smartphones, the differentiating aspects of the iPhone were being mitigated, and these lower-cost alternatives, the Android platform in particular, were causing a lot of pressure and will [continue to] cause a lot of pressure on Apple.

Karin Anderson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.