By DAVID MOON, Moon Capital Management, LLC
August 26, 2012
Some random facts:
The annual revenue of Apple is 20 times the value of everything produced in Greece in a year.
Apple has $117 billion of cash in the bank, or $376 dollars for every man, woman, and child in this country.
There are 1.2 million paid tax preparers in the US, about the same number of people as work at Walmart in the US. There are a combined 765,000 policemen and firemen in the country.
Walmart sells $1.2 billion worth of stuff every day, or $51 million an hour, 24 hours a day.
The total 2010 US farm income was $79 billion. The Department of Agriculture budget that year was $134 billion.
A thousand dollars invested in Target common stock in 2002 would be worth $1,500 today. A thousand dollars invested in Family Dollar would be worth $2,000.
It costs the Bureau of Printing and Engraving 2.41¢ to produce a penny.
Since 2008 the Federal Reserve has created $2 trillion to purchase US government securities. That’s equal to 15 percent of the US mortgage market, or enough to buy a $100,000 home for 28 percent of American homeowners.
Since 2000 the official CPI increased a total of 33 percent. Housing prices increased a reported 39 percent. The price of Corn Flakes increased a very real 88 percent.
Health insurer UnitedHealth has a five percent net profit margin and 18.5 percent return on equity. Cereal maker Kellogg has a nine percent net profit margin and 51 percent return on equity.
From 1981 to 2011, the number of people attending the Berkshire Hathaway annual meeting compounded at a faster annualized rate than did the Berkshire Hathaway stock price.
The US federal debt is approximately 100 percent of GDP. In 2005 the national debt of Greece was 100 percent of its GDP. Greek debt is currently 170 percent of GDP.
US debt was also 100 percent of GDP in 1952. Ten-year Treasury rates were 2.68 percent and interest expense totaled seven percent of federal revenues that year. Ten year rates are currently 1.6 percent and interest expense totals ten percent of federal receipts.
Japan’s interest expense is approximately 23 percent of tax revenues.
In 2011, Knoxville’s Regal Entertainment President Greg Dunn earned $1.7 million. UT head football coach Derek Dooley earned $1.8 million. Regal’s 2011 revenues totaled $2.7 billion. UT football generates about two percent of Regal's revenues, or $60 million annually.
In 2011 Jamie Dimon, head of the most profitable US bank, was awarded total compensation of $23 million. That same year Jiang Jianqing, head of the world’s most profitable bank, was awarded total compensation of $308 thousand.
Since 1990 the price of gold has increased 479 percent. Tractor Supply stock has increased 4,000 percent.
In the 99 years prior to the formation of the Federal Reserve in 1913, the US experienced 24 recessions. In the 99 years since the Fed’s creation we've had 19 recessions.
Even after its $50 billion decline, Facebook’s market value is equal to the combined market capitalization of Viacom and Dish Network.
Since its IPO nine months ago, Groupon’s market capitalization has declined $10 billion. It only has $3.1 billion to go before reaching zero.
David Moon is president of Moon Capital Management, a
Knoxville-based investment management firm. This article
originally appeared in the News Sentinel (Knoxville, TN).