Click here for the PDF: The Weekly Beacon April 21 2023

We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.

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This weeks issue: Apple credit card, Apple diversification, GDP by country, Market capitalization by company, FDIC, Interest rates, Buffett, Streaming industry, Netflix, Paramount Global stock, Berkshire Hathaway, OPEC, Oil prices, Pricing power, Gambling, Investor sentiment, Patience, Recession indicators, Ferrari stock, Tesla stock, LVMH, Worlds richest person, 2023 stock market rally, Large capitalization stocks.


Apple’s diversification

Apple, the technology conglomerate which was founded in 1976 by Steve Jobs and went public in 1980 is now the world’s largest company (by market cap). Apple’s market capitalization is $2.628 trillion, almost $500 billion larger than the second-largest company in the world, Microsoft.

So just how much bigger is Apple relative to other companies?

$500 billion (the market capitalization difference between Apple and Microsoft) is equivalent to the 24th largest economy in terms of GDP in the world. Countries that do not have a total GDP greater than $500 billion include, Belgium, Thailand, Austria, Norway, United Arab Emirates, Nigeria, Israel, South Africa, Denmark, Singapore, and many more. That makes the gap between Apple and the world’s second-largest company as big as Belgium’s entire national output.

$500 billion is equivalent to Johnson & Johnson’s market capitalization. Johnson & Johnson is the world’s 10th largest company (measured by market capitalization). Companies whose market capitalization sits below half a trillion include Visa, LVMH, Exxon Mobil, United Health, Tencent, JP Morgan Chase, Walmart, and many more.

The only reason we give you relative comparisons is to explain the sheer magnitude of Apple’s size.

Apple has even expanded beyond its traditional technology products and services. In 2019, they offered consumers a credit card. As of early 2022, 6.7 million Americans held this credit card. Apple’s card had several consumer-friendly attributes, allowing the card to become popular amongst young users. Fast forward to today and Apple has a new offering.