I’ve owned Qualcomm (QCOM) for many years, and the company is at an excellent rate of return in my portfolio, currently yielding nearly 4% on my cost basis. However, since I invested in Qualcomm, the company has appreciated significantly and currently trades at what I would consider being a significant premium both to historical and future earnings potential.
In this article, I’ll show you why I consider it wise to wait for Qualcomm to become cheaper again prior to investing in the company.
Qualcomm – What does the company do?
Qualcomm is an American company, researching, manufacturing, and holding IP, semis, software, and services related to wireless technology. Among its crown jewels are patents critical to standard mobile communication technologies, but the company produces semiconductor components and software for vehicles, smartwatches/watches, computers, Wi-Fi, smartphones, and other devices.
(Source: Qualcomm Investor Presentation)
The company doesn’t own much production capacity, and most