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on September 22 2011 11:52:55
It has to get a minus for making the usual mistake of equating GDP and revenue with equity and/or market cap. |
on September 22 2011 13:58:02
I think you're missing the point... |
on September 22 2011 14:07:41
No I'm not. I hate when people equate 1 year of economic output with "total equity" or "market capitalization".
Let's take Norway as an example: Norways GDP is less than Apples networth, hence your link would claim Apple is worth more. Is it really? No it means that 1½ years of Norway's output could buy all of Apple's stock, and in 15 years you could buy 10 of them. A totally different outcome compared to what the point your link is trying to make.
This might be a pet peeve of mine, but your link makes this same tired mistake as so many others have done before it (relating to Microsoft, Exxon, Bill Gates, "insert random huge fortune" ), and they've all been wrong when trying to make that point.
Now some of the examples in your link are good. It's interesting to see that Apple has a bigger market cap than the estimated market cap of the whole US clothing sector, or the fact that if you held all Apple stock you could buy all the gold in the New York Fed, but the aforementioned mistakes makes it a -1 by default. |
on September 22 2011 15:26:34
He didn't say that Apple is more worth than Denmark, he said Apple's worth is bigger than Denmark's GDP.
GDP is usually reported for a year, so yeah, that means that even if Denmark pooled all its earnings for a year, it still couldn't buy Apple.
I'm sure a lot of people reading that Apple's market cap is bigger than DK's GDP will misunderstand it, and think that Apple's economy is bigger than DK's, but there's nothing wrong with the sentence "Apple's market cap is bigger than DK's GDP". The point of which is, that Apple is huge!
EDIT: Ok, I re-read it, and he does, in fact, compare economies.  Oh well, the point that Apple is huge still stands. So there. |
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