A recent lawsuit (see more details here) accuses Apple (AAPL) of making a product, the iPod, so compelling and feature-filled that it is dangerous to its user. In this case, the accuser claims the iPod’s massive capacity for tasty tunes of tempting him to listen so often and so loudly that the inevitable result was hearing loss.
[Item] 30. Compounding this problem is the [iPod]’s capability to store and play tens of thousands of songs, giving the listener the ability to listen to seemingly endless music without any rest, and without giving ears a chance to recover.
As any MBA worth his salt knows, two data points make a trend — thus, I lump this lawsuit in with the obesity suits plaguing McDonalds (for producing too many delicious fried foods). And, taking into consideration the solid to stellar performance of MCD and AAPL over the last two years, I am now recommending Long or Short readers take long positions in any company producing a product so good it could be considered dangerous by ambulance-chasers or the abdication-of-personal-responsibility crowd.
Recommendation: Long AAPL, MCD and all other such producers. This also dovetails with our earlier analysis of the Idiot Demographic.