By Warburton Capital | July 7, 2015 | 0 Comment
IN THE NEWS: Our firm’s founder, Tom Warburton, was recently featured in the Tulsa Business & Legal News regarding his thoughts on Greece and the recent “Grexit.” This article hits the high points of our thoughts on the matter, but if you would like to discuss more in-depth – or would like a second opinion on your investments in light of uncertainty abroad – please click to Contact Us Here!
Excerpts of the article are below:
“Now, what that means is if you look at all the public companies that are Greek and you added up how much they are worth in the public marketplace, all the companies domiciled in Greece are only worth $28 billion,” Warburton said.
By comparison, Apple Inc. was worth $643 billion at the end of December. “So, here is a single company Apple, in market capitalization, 23 times larger than the entire country of Greece,” Warburton said. “That’s unbelievable and it puts in perspective on how small Greece is.
If Apple announced a downward revision in its earnings and its stock dropped 4 to 5 percent, which happens many times, a 4 to 5 percent decline in Apple’s price would be equal to every Greek company going completely bankrupt, according to Warburton.
Warburton says he always suggests global diversification. Any stock or any country with indexes and individual security prices can undergo temporary momentum.”As a long-term investor, the trend is up, if you look at the long term trend of equity,” he said. “But the short-term trends are really not predictable and they are always volatile. Frankly, I would not change my investment strategy based on what is going on in Greece today.”