Dissecting Future Earnings Potential

                     Dissecting Future Earnings Potential

       Determining the future earnings of Apple and Diageo corporations and the likelihood of their earnings coming from their current product line. When investing in companies it is extremely important to look at their product line and to look ten years into the future and see if the particular company will be able to derive earnings from their various products.

                               

        When I look at Apple corporations product line right now I see the Ipad and Iphone. The Ipad and Iphone are extraordinary  products that produce amazing earnings, but will Apple be producing these products for amazing earnings ten years from now?   I cannot answer that question with certainty.   Does the Blackberry ring a bell to anybody and look what has happened to that product darling of yester years. The question at hand is will Apple be able to innovate their current product line and produce a new product line to match their current earnings ten years in the future?Investing in Apple is investing in Apple's ability to innovate amazing products over and over. I'm not staying Apple isn't a great company, but what I'm saying is will Apple be able to sell 33 million Iphones and 14 million Ipads a year?

        Now, when I look at Diageo corporations product lines right now I see Johnnie Walker Scotch, Captain Morgans Rum, Red Stripe Lager, Ketel One Vodka, Gordons Gin, Smirnoff Vodka, Baileys Irish Cream liqueur and etc... I believe, these products will stand the tests of time and provide steady streams of income with predictability. Johnnie Walker Scotch has been selling scotches since 1870.
With Diageo's product line producing steady earnings for years to come, then one can make a long term investment with the safety in earnings.