Before the introduction of the iPhone, Apple was just another company in the United States. However, the introduction of the gadget helped catapult the electronic giant to one of the most valuable publicly traded company in the United States. Today, if there is something that Apple is known for, its stock market distinction. For instance, market history dating back from 1926 portrays Apple as the number one company in generating profits for their investors. No other American company can match this feat. Looking at a study that has been done by a WP Carey School of Business at Arizona State University finance professor known as Hendrik Bessembinder helps us understand why Apple is more successful. Through his study, the professor discovered a piece of information that many investors are not willing to listen to. He realized that most of the stocks in the American market are not good investments. He discovered that these investments don’t give the investors an equivalent of the standard one-month Treasury bill. At the same time, the professor discovered a small number of these stocks could be quite profitable. In fact, the professor discovered that only four percent of stocks that are traded publicly amount to the wealth that has been earned by investors since the Great Depression.
While speaking to the professor on Phone, he said that people should understand that the stock market is a moving target. Therefore, the findings of a single person don’t have the capability of capturing the sharp movement every time. For instance, in the 2016 findings, Exxon Mobil was the most valuable company and not Apple. Back then, Apple was worth $745 billion while Exxon Mobil was worth $1 trillion. Things have changed this year as oil shares have dropped by 11 percent allowing Apple to overtake Exxon Mobil. By introducing a new model of the iPhone, Apple shares have increased by 37 percent. Running numbers today will show you that Apple is worth over $1 trillion while Exxon Mobil has a net worth of $910 billion. The professor then says that it’s remarkable that Apple has been able to make such money in a short period of time. Other than Apple and Exxon Mobil, other companies making huge amounts for their clients include General Electric, Schlumberger, Pepsico, DuPont, Coca-Cola as well as Altria and IBM. To come up with this statistics, the professor used a database provided by the University of Chicago.
Dil Bole Oberoi
