It comes as no surprise that BP stock has lost quite a lot of money since April 20's oil rig explosion. Just how much is a lot? $100 billion.
Right off the bat, $100B is pretty difficult to wrap our brains around. We thought we’d paint the number a little bit clearer for you with another infographic.
Click here to see the full image.
In the graphic, Visual Economics reports an extensive list of all of the things that could be purchased with the money BP stock has lost. They estimate that the money could afford ten years of clean water for each of the 884 million people in the world without access to it, plus a new home to replace each of the ones lost in Hurricane Katrina (which works out to around 275,000), plus a 2010 Toyota Prius for each of BP’s employees, plus both Twitter and Yahoo Inc., among other ridiculous buys such as an ice cream sandwich for everyone on earth and a trip to outer space for every U.S. Senator.
What does this mean for BP shareholders? The day of the oil rig explosion (it occurred in the evening) BP’s share price had closed at $60.48 on the NYSE. It was up 55% over the past year and was paying an annual dividend of $3.36 to its shareholders. Since disaster struck, BP shares have lost half of their value.
For all investors, this disaster only really shows how putting all of your investments in one stock can be incredibly risky. Asset allocation is a necessity. No matter how strong a particular stock has been, you never know what the future may hold.
What do you think this means for shareholders? Any other suggestions for what $100 billion could buy? Leave us a comment!