02-28-2019, 01:44 PM
(This post was last modified: 02-28-2019, 01:45 PM by Roadmap2Retire.)
I used to own QCOM because I really liked how the technology was pervasive in all sorts of mobile devices -- no matter if you go with Apple or Android, all seemed to rely on QCOM tech.
However, over the years, I didnt like how the incentives misaligned with management & board decisions and decided to sell and exit the position after a decent profit. Case in point was record executive compensation for Mollenkopf et al. Another major point was the billions of stock buybacks occurring on open market, while the share count increased, collapsing ROIC etc.
The high profile litigation issues against AAPL are definitely concerning. Something that I wouldn't want to get caught in with my assets. There are better tech/semiconductor plays (like AVGO perhaps, even though its not exactly the same addressable market) without the risk that comes with QCOM.
However, over the years, I didnt like how the incentives misaligned with management & board decisions and decided to sell and exit the position after a decent profit. Case in point was record executive compensation for Mollenkopf et al. Another major point was the billions of stock buybacks occurring on open market, while the share count increased, collapsing ROIC etc.
The high profile litigation issues against AAPL are definitely concerning. Something that I wouldn't want to get caught in with my assets. There are better tech/semiconductor plays (like AVGO perhaps, even though its not exactly the same addressable market) without the risk that comes with QCOM.