AAPL as Tiffanys

Brett Arends is going to get a lot of hate mail from Apple fanboys for this article giving 10 reasons why he doesn't want an iPad. No matter what you think of his overall point, he's got at least one gem in his 10 reasons.

3. Check out those profit margins!

OK, I admit it: I've been wrong about Apple stock lately. After correctly turning bullish at $85 two years ago, I turned cautious waaay too early. My mistake? This isn't a technology company. It's a luxury brand, like Hermès or Tiffany. And it's wooed customers so they'll pay almost anything for its products. Last Christmas, Apple's gross margins were 41%. That's incredible. It's good for Apple, good for stockholders—but not so good for shoppers. Me, I don't want to support someone else's 60% markups with my own dollars. Generally speaking, the smarter move is to invest in the Tiffanys of the world—and shop at the Wal-Marts.

Bingo.