Its crazy to think that Apple may soon become the first 3 trillion dollar company in the world. It is currently at 2.87 Trillion Dollars
Some Interesting observations which I can immediately think of :
Total Indian Stock Market Market cap is 3.49 Trillion Dollars (Source : All India Market Capitalization | BSE Listed stocks Market Capitalization). Basically one apple is almost 82% of total Indian stock market
Warren Buffet holds 5.5% Stake in Apple which amounts to 157.8 Billion Dollars Approximately which forms 40% of Buffet’s portfolio (Source : Varinder Bansal’s Tweet)
Silly Comparsion but why not …Apple’s Market Cap = India’s GDP Currently (i know we are comparing Apples with oranges )
Would love to hear your views on this GIANTTTTT of a company .
yup Apple is huge and still growing.
As you pointed out Apple forms almost 40% of Berkshire’s investment.
But Berkshire still has another US$ 150 Billion in cash, in search of investment avenue. So effectively Berkshire has as much cash as their apple holding
Saw this interesting piece of data on Twitter (Source : Balaji Vaidyanath)
Full year PAT:
Google - ₹570,000 crs
Nifty 50 - ₹570,000 crs (TTM)
Google: ₹145 lakh crores
Nifty 50: ₹135 lakh crores
Nifty 50: 23.6x
Nifty 50: 14%
Nifty 50: 15%??
What happens lets say - 5 years down the line ?
Are you seeing GOOGLE (a.k.a Alphabet) business model change for the next 5 years?
I would definitely not bet against giants like Google. (esp. when it comes to business model) It’s astonishing to see these FAAMG stocks growing like mid and small caps even now.
Only risk i see for these companies is govts breaking them up citing antitrust laws.
I believe that the internet as a whole has changed many company structures. Companies such as Google are destined to evolve over time. It is true that these companies will continue to achieve greater levels in the future.
Google services continue to be in high demand. Google Ads continues to generate the most of the company’s revenue.
If you look at the FAAMG’s performance over the last year. Alphabet seems to be doing well.
Also, have a look at https://abc.xyz
These companies are projected to become even bigger. But I also think that there is a good chance that some anti trust laws will be made when these become even bigger.
The old Antitrust regime is on its way out I think. Most Senators and Congressmen are heavily invested in these very companies, they won’t regulate against themselves. They do slap on the wrists from time to time in terms of penalties and fines, which these cash rich giant can easily shell out without breaking a sweat, to make it look like something is being done. Same thing was done for Wallstreet Banks for the entire 20th century.
High time Indian Companies got out of their shell and start competing globally in terms of products and services. For now only TCS has been able to do this. We need more global brands.
I don’t agree on Anti-trust part. In fact regulators are getting more stringent now and blocking lot of stuff which was earlier getting easily approved
In fact this is single biggest problem Facebook is facing now. Zuckerberg always used to buy his way out but now he is being stopped and Facebook is actually required to build stuff, where they are struggling.
Found this article explaining Facebook’s trouble with regulators. Might be interesting.
Big tech after not being allowed to create Magic Money to add to their Infinite pool of Cash
I personally am a long term dollar bear from 2020…Me thinks dollar should atleast lose 20-25% of value in next 4-5 years. I know its kind of outrageous but its a wild bet on my part.
I would gladly sit on the other side of this trade. People have been calling the top on USA the day it began, 450 years and it still towers over the rest of the world combined. It is the Rome of our times, what happens in US decides how the world will look like for years to come and until the innovation pool dries up, wealth will keep flowing there.
China being a far second does have a chance to do it, but it would want to artificially keep its currency devalued being a net exporter for as long as it can. Europe is a mess, India busy getting its fundamentals straight first. If there is a competition going on, the rest of the world surely didn’t get the memo.
Yeah thats an extremely balanced and pragmatic take.
As I said, My bet is extremely risky but its like that Ek ka duss lottery ticket. I just feel that with pandemic and the events that have happened afterwards, The Geopolitical dynamics are changing rapidly. With Crypto, Digital Currencies and other geopolitical factors in play - I’m expecting tremendous changes and I daresay, Rapid decline of Dollar in next half decade.