In recent weeks, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have all reached new record highs, thanks in part to the performance of the “Magnificent Seven” stocks. These seven companies, including Apple, have been instrumental in driving the market to new levels.
However, DailyBubble believes it’s time to reevaluate the inclusion of Apple in the Magnificent Seven. While the tech giant has had success with its iPhone and Services segment, its growth has stalled, with declining sales in its physical product segments. With Apple’s valuation at 27 times forecast EPS, a lack of growth for two consecutive years raises concerns.
Instead, DailyBubble suggests considering Berkshire Hathaway as a replacement for Apple in the Magnificent Seven. Warren Buffett’s company has a strong track record of generating returns for shareholders, with a diverse investment portfolio and a focus on share buybacks to boost EPS.
Another company that DailyBubble sees as a potential addition to the Magnificent Seven is Visa. As a leading payment processor with a consistent track record of growth since its IPO, Visa benefits from long-term economic expansions and international growth opportunities.
Overall, DailyBubble believes it’s time to reconsider the composition of the Magnificent Seven, with companies like Berkshire Hathaway and Visa offering strong potential for future growth and performance.