My auctioneer friend, Digby Sales (his stage name), was famous for saying “When they all want it, that’s a good thing. When they all got it, that’s a bad thing and that’s when I close the auction and say goodnight Gracie.”
Digby knew that in the acquisition mode of “must have,” people would continue to pay higher and higher prices. He was a master of whipping the crowd into a frenzy.
Bidders were completely at his mercy and casual observers would look at each other with amazement.
The general bystanders simply could not understand what would possess someone to pay an exorbitant price for something that was vin ordinaire.
I’m sure that after arriving home and far removed from the magical influence of Digby, those who made purchases would also wonder what possessed them to pay such ridiculous prices.
Although, they did take solace in the fact that others had been mesmerized just as much as they were.
After all, the lemming theory is still going strong.
And so it is, or was, with another master auctioneer, the late Steve Jobs.
It has become very apparent that Apple did not lose a product creator in Steve Jobs; they lost another P.T. Barnum or Digby Sales.
As the iPad 3 was unveiled to much hoopla, the realization became very apparent to those in the market that the “new iPad” was not necessarily a barn burner.
Most assuredly, the long lines will still form and CNBC will film ardent Apple groupies anxiously awaiting their new toy.
But the magic might be gone.
It all relates directly to Digby Sales and his famous quote.
Specifically, I’m referring to Apple stock, and “when they all got it, that’s a bad thing.” You see, everyone who matters owns Apple stock, and even those who aren’t important and don’t own the stock seem to want it.
Therefore, the combination of no auctioneer and total ownership of the stock across the board made for a day that saw Apple close up just $0.43 per share (as of 3/7/12).
Had Steve Jobs been the “auctioneer,” I’m sure the stock would have been up dramatically higher.
Where or where was the supernatural influence of Steve Jobs when Apple so desperately needed it?
Maybe I should give them Digby’s phone number.
However, I think he would have said “No thanks, the party might be over. It’s time to close the auction and say goodnight Gracie.”
Along with his 40-years of dedication in the financial services industry, Bill is the President and CEO of GPSforLife, has recently authored a highly successful book entitled 44th: A Presidential Conspiracy, publishes his dynamic monthly financial newsletter MacroProfit, and faithfully continues his third decade on the radio with It’s All About Money, which can be heard weekdays on Money Radio in Phoenix and in podcast form on his website (and on smartphone apps) published at billtatro.com weekdays at 5pm Eastern. Bill can be reached via email at firstname.lastname@example.org and on Twitter @tatroshow.