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Apple is bigger than almost any stock market in the world
- deleted 3y ago[deleted]
- apienx 3y ago"The $40 trillion in stock market wealth in the U.S. is almost 60% of the value of all the equities in the world." Americans make up 4-5% of the world population.
- EliRivers 3y agoAmericans make up 4-5% of the world population. Is this about Americans owning 60% of the value of all the equities in the world, or is just that 60% of the value of all the equities in the world are listed on US markets? Over half of my stocks were bought on US exchanges and I'm not a US citizen. Very roughly calculated, Norway owns about 1.5% of the world's equities so Norway owns a nice piece of that $40 trillion and they're also not US citizens (well, some of them are, I expect).
- RC_ITR 3y agoThe fractions are as follows: [US HQ Public companies / All Public companies] = 60% [US People / All People] = 5% The listing venue doesn't matter (though for obvious reasons, almost no US companies list overseas). The 60% also does not include foreign companies like Spotify that list in the US. The point being that things that started in the US and are primarily run by people in the US are way overrepresented.
- sschueller 3y agoJust last year the Swiss National Bank's portfolio for Google, Apple, Facebook, Amazon and Microsoft was over 24 billion. They owned 8.5 billion in Apple and 7 billion in Microsoft alone. [1] [1] https://www.inside-it.ch/big-tech-sorgt-fuer-grosse-verluste-bei-der-schweizerischen-nationalbank-20230307 https://www.inside-it.ch/big-tech-sorgt-fuer-grosse-verluste...
- BizarroLand 3y agoAnd 8 of those Americans personally hold as much wealth as the 4 billion poorest people in the world, or 50% of the population. If you're an American you're not especially wealthy or well off compared to the world average and adjusted for expenses. It's just rhetoric to make you feel embarrassed for wanting anything more than you have already received.
- BadTakeAbove 3y agoThe US median wealth and income (PPP adjusted) is at or near the top. The 75th percentile is significantly higher than all other countries because educated knowledge workers are building products that are used by the entire world.
- panax 3y agoThat helps illustrate that a lot of US equities are relatively overvalued. Very high valuations and relatively low risk premiums for US equities.
- jjtheblunt 3y agodoes it also illustrate that, outside of america, there are huge numbers of people in poverty?
- BadTakeAbove 3y agoMaybe somewhat, but mostly it means that the US is an economic powerhouse with a lot of companies that provide global value (see: basically every tech company).
- panax 3y agoYes that too. It also has some of the best quality companies which accounts for a lot of it, but even then it is still pretty extreme.
- perryizgr8 3y agoI don't know what to make of this information. It's clearly true. But I don't understand what it means, what's the take away.
- slap_shot 3y agosimplified: Exchanges are a group of public companies. Each company has a market capitalization, calculated by the number of shares * the share price. Apple's individual market cap is greater than the aggregate market cap (sum of all companies' market caps in the exchange) in many other exchanges in the world. It means what we already know: Apple is a very large company (it's the largest public company in the world).
- _hypx 3y agoIt is also unfortunately a sign of a market imbalance. There have been periods in history where one company or group of related companies held a ridiculously large percentage of stock market capitalization. They rarely last for long, and in the long run they always regress to the mean.
- lostgame 3y agoLove him or hate him; you have to respect the reality that good leadership and vision is what got this company from it’s main competitor bailing it out 25-ish years ago to becoming one of the most valuable tech companies in the world. I believe a lot of that came from recognizing and adapting to trends, such as when Napster was an huge thing and Apple chased after a legal digital music option. I think for anyone who was big on tech in the 90’s, Apple’s current position was unthinkable, such as SEGA no longer being in the console market.
- grumpyprole 3y agoYes, but also tech in general provides new and innovative ways of implementing vendor lock-in at unprecedented scales. Left unchecked, Apple could easily take much more existing commerce, finance and numerous other business, leveraging their existing platforms.
- hnburnsy 3y agoAs a US citizen, I have always wondered if those in other countries invest in US securities or securities of their home county. Do they buy US securities through an ADR on their local stock market?
- funnym0nk3y 3y agoThey do. Of course there is still a home bias. AFAIK those stocks are traded directly on foreign exchanges.
- hnburnsy 3y agoThx!
- panax 3y agoWhat was also interesting and caused some issues was when Naspers owned ~1/3 of Tencent when at its peak was valued over $800 billion and their stake was worth more than the entire GDP of South Africa causing them to basically dwarf the rest of the Johannesburg exchange.
- papertrail-work 3y agoReally makes me wonder what the European tech scene is like. I might be living in my North American tech bubble but I rarely hear about large tech conglomerates coming out of the EU nor any "revolutionary" products. Is there just no investment? What is the US doing that Europe isn't?
- uni_rule 3y agoThe EU seems to do more "back end" technological developments than it does visible consumer brands. Less Apple or Google, more ASML or Nokia Networks.
- BadTakeAbove 3y agoRegulations stifle anything that deals with consumers directly.
- BadTakeAbove 3y agoYou aren't in a bubble, there just aren't many. There are tech companies but they're largely copies of US companies built for the local market (DoorDash -> Deliveroo, Uber/Lyft -> Bolt, etc). Europe has twice the number of people so there should be twice the number of notable companies but it's a small fraction instead. The US has a history of innovation and a culture of ambition, drive, and seeking financial independence. Europe is more concerned with regulation and bureaucracy.
- Moldoteck 3y agoNr of people is irrelevant. Nr of people speaking same language and having similar culture is relevant. Also nr of steps to break into markets of each eu country
- johanvts 3y agoIt does happen. Spotify and Unity come to mind, but then they always move to the US. Don’t know why.
- czytaszhakera 3y ago