The success of Nintendo Wii is a "Black Swan" from my own perspective. I didn't expect that Wii could be so successful, out-selling both PS3 and XBox 360. Maybe some of you have expected that, but humbly, I have to admit that I didn't.
Technology companies are subjected to extreme and fast changes and "Black Swan" events are happening all the time. However, they are very difficult to predict and the extent of the impact would be massive.
Therefore, it would be extremely but not impossible to value a fast-changing technology companies i.e. Nintendo, Sony, etc.
Warren Buffett likes stable and easily predictable companies i.e. Coca Cola as he could project 10 to 20 years out. Other great investors like Glenn Greenberg, Tom Russo, Li Lu, Bill Nygren, Whitney Tilson, Marty Whitman and others are among members of this camp.
For ordinary investors, it is better to stick to "one-foot hurdle" than "10-foot-hurdle". Great investors like Bill Miller and Eddie Lampert, who are successful in dealing with "10-foot-hurdle" problems, are rare.
Sales of Nintendo's quirky Wii video game machine could top the legendary PlayStation 2, making it the biggest hit in the industry's history, Nintendo President Satoru Iwata said on Thursday.
Nintendo Co. Ltd. sped past Sony Corp. in market capitalization last month to become one of the 10 most valuable companies in Japan.