Brian Feroldi
speaker
282 appearances
2 recordings
1 series
first heard Apr 2022
last heard Dec 2022
Brian Feroldi’s voice in public audio — every appearance, attributed to the second.
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Australian Finance Podcast · Why does the stock market go up? | Ft. Brian Feroldi · 11 Apr 2022
podcast
Stock is like up so much.
The answer is that when Starbucks came public, there was only a few hundred of these stores like around the world, just a few hundred, primarily located in the Pacific Northwest of the United States.
And Starbucks came public.
It sold shares to the public because it wanted money so that it could build more stores.
If you look at what's happened between then and today, Starbucks now has tens of thousands of stores all around the world, and they continue to add hundreds or maybe even thousands of stores each year to their vast empire.
every time they open up a new store, the business, Starbucks the business, earns more revenue.
And in addition to that, each Starbucks location that's existed for 20, 10, 20, 30 years, each of those businesses tends to get more profitable each and every year as it goes by.
So why is Starbucks the business so much bigger, so much more valuable today than it was 10 years ago, 20 years ago, 30 years ago?
Answer, there's many, many more stores selling many, many more cups of coffee.
The company has tens of billions of dollars in revenue and is producing billions of dollars in profits.
That's why Starbucks used to be small and now it's big.
the exact same principle applies to the stock market as a whole.
It's just that it's a lot harder to understand and analyze hundreds of companies collectively than it is to analyze one business.
But-
In the United States, the most popular common stock index that we use to measure the health of our markets is called the S&P 500, the Standard & Poor's 500.
It's 500 of America's largest and most profitable businesses.
And if you look over long periods of time, the S&P 500 just continually goes up.
The fundamental reason for that is that the components, the 500 companies that make up the S&P 500, get more profitable each and every year.
Not in a straight line.
There's some big years it's up, some years that it's down, depending on what's going on in the economy.
Showing 141–160 of 282 · page 8 of 15
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