Why then does the market, where buyers and sellers determine relative value, show otherwise? California-based companies surpass their competitors in the U.S. by most measures of performance favored by investors.
Since January 2011, when Edmund G. "Jerry" Brown Jr., became governor for the third time, the 63 publicly traded California companies in the Standard & Poor's 500 produced the best total return among the five states with the largest populations. California companies in the S&P 500 delivered returns of 134 percent; the closest big-state challenger was Florida, whose S&P companies had an 82 percent return, according to data compiled by Bloomberg. Texas-based companies delivered 52 percent during the period.
The revenue from technology companies may be the most revealing measure of how successfully California business deals with disruption. As of this month, the trailing 12-month revenue of technology companies in the state was $715 billion, or 52 percent of technology company sales in the U.S. New York was No. 2 with 11 percent, followed by Washington's 7 percent, Massachusetts' 4 percent and Virginia's 3 percent.
The exceptional performance of California companies helps explain why (with no official gross domestic product data available yet) the state would have the world's seventh largest economy if it were a country, bigger than Brazil's, which saw its GDP decline in 2014. Here's the rough calculation: Companies based in California grew 4.7 percent during the first three quarters of last year. Using 4.7 percent as a proxy for the growth of the market capitalization of California, the total market cap of the state grew to $2.3 trillion from $2.2 trillion in 2013. (Brazil’s GDP declined 1 percent from $2.25 trillion in the first three quarters of 2014 as its exports of raw materials fell.) As of March 10, 33 California companies are included in the 500 largest companies in the world. At the end of 2009, when the U.S. was recovering from the worst recession since the Great Depression, there were only 24 California companies in the Global 500, according to Bloomberg data.
Call it snobbish, call me a dick, facts are facts. California just crushing life as per usual. I'm not saying that I understand what all of that stuff means because believe me I don't, but I definitely like what I'm hearing. More productive, better work, accounting for over half of the technology company sales in the entire county, almost five times as much as second place. We added 8 new companies to the top 500 in the world list during one of the worst recessions in the history of our country. Can't stop, won't stop bitches. Add that to the lost list of accomplishments. Best weather, best scenery, best nightlife, best food, hottest girls. And the crazy thing is we are only going to get stronger. Pretty much every successful tech company aims to make the move out to the west coast, those numbers are only going to continue to grow. Think about it. California is the greatest farm system of all time, it just so happens to be for the tech industry. California is to computers what Cuba is to baseball. There's just something in the water*.
Pretty crazy that a state full of stoners can produce at such a high level. It's like watching Doc Ellis throw that no-no while he was zonked out of his skull on LSD. Every part of this doesn't really make any sense but here we are. 100 years from now California will be so rich that they'll be able to buy the rest of the country if that is even possible. I saw the word "trillion" and my brain just took over for a minute.
*What little water we have
No comments:
Post a Comment