It took forever to reach 1 Trillion and less than a year to go to 2.
Impressive
Impressive
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Apple dang near 2 TRILLION
- Thread starter dukebound85
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Heh, and all those death knells in the wake of that achievement. Gotta love all that depressive optimism.
The more money you have, the easier it becomes to make money.
But I’d rather not see such huge companies. It’s not good for competition.
But I’d rather not see such huge companies. It’s not good for competition.
I will never understand this line of thinking. Its like saying you can be successful in the world, but not TOO successful.
Well big companies like Apple, Google, Amazon etc simply destroy the competition. How many times do you hear that a company has gone bust because Amazon (with their detestable business practices) has taken all their customers.
Or Apple has bought out some smaller company either to sell their ideas as their own, or simply to mothball the idea they think is not good for their shareholders.
Google has the power to make or break anyone. Through their search engines they control what we read, see and hear about.
Promote one product over another. The way Google ad words works for example is a mystery to the vast majority of users.
I would really like from someone who understands investing and the stock market to explain to me how it took Apple from 1976 to 2019(43 years) to reach $1T which was unbelieavable , then in another year it doubled its value to $2T?
What happened in that 1 year that made it worth twice that much? Even worse it happened during the pandemic when businesses is down, employees are being laid off, and people under curfew. I say its a bubble that will pop soon
What happened in that 1 year that made it worth twice that much? Even worse it happened during the pandemic when businesses is down, employees are being laid off, and people under curfew. I say its a bubble that will pop soon
Hah. Dongles? Watchbands? Deciding to have a small AND a large format iPhone? It all adds up.
Of course there's a bubble. People don't know where to stash their money for quite awhile now since Treasuries quit looking like such a great place to hang out, so they keep looking at that pile of cash and one day.... when the market drops a bit because people already covered their shorts and are back to shorting again, but nothing seems to get much cheaper for very long at a time... they go ahead and throw a couple thousand bucks into something or other, even though they know the whole planet has bought into the overall market bubble on stocks, no longer trusting junk bonds as a safe haven. So they too contribute to the bubble. It's how bubbles work. Look, if everyone who had 28 shares AAPL after that first split has gone and bought 2 more just to round up before the next one, and because they didn't know what else to do with cash piling up in the account from freaking out and selling something "too soon"...
Take your pick. People with idle cash in their accounts and not trusting even bonds and not being gold bugs and being distrustful of special vehicles or REITs or whatever, what are they going to do? They either buy tech stuff like Apple even though still so pricey, or beat the rush to buy things like canned food distributors or dividend-paying utilities for when things go further south in this dicey actual economy. The one will come back and the others only drop so far before someone figures a rainy day will come again and everyone pays their utility bill (!? ya gotta wonder now, but...) and everyone including food pantries needs some cans of beans and soups in the back cupboards
Me, I gave every single thing I own a little haircut awhile back. Some of what remains of stuff I had bought in 2009 was gettin' just a tad too rich for my taste nowadays. My banker granddad would roll in his grave to know I still had money in these markets even though I'm not betting the groceries. Surely some kinfolk will be looking for college tuition assistance and I only charge barter rates like helping me put on my storm windows. What's left in the account now will drop and then come back at some point. After a crash people always finally realize they have to put the money to work somewhere... (and why not Apple? It's not like they don't keep innovating to make fine gear).
Meanwhile I did my bit for AAPL's true underlying value and went for a 2020 MBA back in the spring. That is one very sweet machine for general computing. Next up for me is the new SE. I'm too old to need an Apple watch to help me navigate a crowded calendar, and frankly in these markets I don't want to have an EKG at the ready on my wrist. 😉😳😵😳🥳😱👻🤡🙀
I can't tell if that's a rhetorical question or you actually want an answer. But here goes:
Compound Interest.
Not sure if you are kidding or not, what does compound interested have to do with a company being worth twice a Trillion dollars in 1 year during a world wide pandemic?
Because you become too powerful, and by explicit or implicit actions you degrade open competition and make it hard for smaller companies to be successful.
Plus we love to root for the underdog especially when the Davids of the world are going against the Goliaths. Yet when those same Davids turn into Goliath themselves well then we start rooting against them.
Same exact thing happens in sports, the Patriots were the team to be root for against the vaunted St. Louis Rams back in 2002 but in 2019 when they were playing against the Rams again, most people (outside of new england) were rooting for the Rams.
But why put your money in overvalued stock? What if it drops and never regains? its not like this never happened.
Whats wrong with keeping your money in the bank. 1M in the bank is better than 700K 3 years later.
Because the interest rates at the bank are so low, your money probably goes down after you factor in inflation.
Indeed. There’s no guarantees. Property is the safest bet. That’s where most of my money is tied up.
I'm good w/ "money in the bank" off that 20% haircut I applied to most individual shareholdings I had a little while ago. I regard it as what to use later to buy in again later (as in 2009) or as I said, in case kin come knocking at the door looking for college financial assistance. I haven't forgotten a couple great-aunts helped me patch together what I didn't have from scholarship monies when I went off to college, so I'm glad to help out in that same way.
But I've never been one to cash out completely. I've not been one for penny stocks so I'm generally willing to take the rollercoaster ride with the equities I've chosen.
Sure one can guess wrong and take a bath but most of my stuff is from 2009 and has necessarily (to me) got a few haircuts for the sake of prudence along the way anyhow; most of what's left is gravy. Bottom line for me it's never grocery money, so in that context for gravy to just sit in the bank as a primary investment for long periods seems unattractive. That said, these markets are bubbly so I'm disinclined to drop even gravy into it now. YMMV.
Bubble yes, but that is only part of the answer. The truth is much worse.
The bigger cause of the "amazing" rise in stock prices is the massive stimulus programs governments are using. To stimulate the lagging economies all around the world, central banks have lowered to cost of capital to zero. The avowed intention is to enable businesses to invest to encourage increased production. But spending money on hardware, or to hire people, is more risky than shrinking the ownership of existing companies. Entities large enough to obtain the low cost money, provided by the government, buy back shares and increase dividends. Share buybacks and dividend increases lead to higher stock prices, even if there is no change in the underlying business. Higher stock prices create the illusion of fiscal improvement, the illusion that their use of free money from the government is beneficial.
In the case of businesses which are actually profitable, such as Apple, the result is the breathtaking increase in stock price. Apple is not really worth that much more; the money which denominates the stock price is worth that much less. The insidious complication is that the money by which the worth of the rest of the economy is judged is the same, equally inflated (devalued). Companies which are not fiscally viable, which should long ago have been liquidated (gone bankrupt), have been temporarily propped up. Individuals (natural or corporate) who have saved cash see the value of their savings greatly decrease. Overall, current macro economic policy masks corporate failure, and penalizes "virtuous" saving.
A parameter of traditional economic theory is the inflation rate. I think the inflation in stock prices, which we have seen recently, is not counted in inflation as current measured.
This will almost certainly not end well.
So...the dollar is valued less now? So you have to give more dollars to get the same Apple share?
Having to give more dollars to get the same Apple share is not in question. That is the observed fact which I attempted to at least partially explain.