Aug 212012
 

There doesn’t seem to be anything stopping the giant Apple Inc from its ever expanding size. Each Apple share now is worth more than $650. Investors believe that Apple, as a corporation, is worth altogether over $615,000,000,000. That’s quite a lot of moola. In fact Apple recently broke the historical world record for the largest market capitalization ever, meaning the largest company in the world. Its ridiculous size is roughly equivalent to the combined market caps of technology giants IBM, Google, Intel, and HP, all combined!

To explain what market cap is, let’s imagine a blogger who wants to sell his site for $1,000. But a buyer thinks the blog is only worth $200. The seller wants to value his blog at the highest price possible, but the buyer wants it at the lowest price possible. The price point in the middle which both parties can agree on is the market capitalization of the blog. In Apple’s case, buyers and sellers of Apple shares agree that the company is worth $615 Billion today… If tomorrow investors believe Apple is worth more then each share will be more expensive signalling people are willing to buy/sell the company at a higher price point. (Share price) x (Number of existing shares) = (Market Cap)

image credit: http://ihatepeacocks.com

 

Key Apple Market Cap Milestones

  • May 30, 2007 – Apple tops $100 billion
  • March 9, 2010 – Apple passes $200 billion
  • May 26, 2010 – Apple becomes 2nd largest stock, surpassing Microsoft’s market cap of $219 billion
  • Jan. 3, 2011 – Apple crosses $300 billion milestone
  • Aug. 10, 2011 – Apple becomes world’s largest stock, topping Exxon Mobil’s $331 billion market cap
  • Jan. 25, 2012 – Apple rises to $400 billion
  • Feb. 29, 2012 – Apple becomes 5th stock ever to cross $500 billion
  • Aug. 17, 2012 – Apple closes with a $600 billion market cap for the first time

Source: CNBC Analytics and S&P Capital IQ

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I have also updated my Hedge Fund...

More than 5 stocks DRIPed. A couple raised their dividends. And some new additions to the party include, Bombardier (they manufacture the skytrains I ride in Vancouver)  Vodaphone, Pengrowth Energy, and Keyera.

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7 Comments on "Apple’s History and Hedge Fund Update"

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Modest Money
Guest

Damn that’s some crazy growth over 5 years. It isn’t too surprising when you consider how many people own an iphone or ipad and how expensive those things are. Then throw in how they make them in overseas sweatshops where people commit mass suicides. Yup they’ve got a pretty profitable business model. Now the pressure is on them to just keep growing. So it’ll be interesting to see what they come up with in the next 5-10 years.

Liquid
Admin

I heard on the news they’re starting to treat their employees better. Lowering it to 60 hours a week, is now the maximum anyone in the plant is allowed to work. Hard to imagine what this number was before the drop.

TB at BlueCollarWorkman
Guest

(1) I had no idea what a market cap was, thanks for the explanation! And (2) That pic with the kid and the apple quote was AWESOME. REally puts it all in perspective, doesnt’ it?

Liquid
Admin

It does. People in less fortunate countries must see the world in a very different way than us.

Steve@The Loonie Bin
Guest
Steve@The Loonie Bin

I remember when Apple was the red headed step child of the computer world and now look at them. Isn’t it amazing what planned obsolescence and slave labor can accomplish!?

Liquid
Admin

That is quite neat. Wish I would’ve known the secret formula for success 10 years ago. I’m one to believe that it was mostly because of Jobs who turned the company around.

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