Posted by on Jan 13, 2019 in Articles & Advice, Blog, Columns, Featured |

Image Credit: Alex Nabaum

By Jason Zweig | Jan. 11, 2019 12:04 p.m. ET

 

On Jan. 7, Amazon.com Inc. became the world’s largest company by market capitalization. Its rise might make you think today’s biggest technology companies are turning into unstoppable juggernauts of growth, or that turnover at the top is only accelerating.

First, consider the history of all the companies that have ranked No. 1 by market size. It’s full of surprises.

From the beginning of 1926 through the end of last year, only 10 companies have ever ranked No. 1 among all U.S. stocks by market capitalization. Amazon has just become the 11th, succeeding Microsoft Corp., Apple Inc., ExxonMobil Corp., General Electric Co., Walmart Inc., Altria Group Inc., International Business Machines Corp., DowDuPont Inc., General Motors Co. and AT&T Inc….
 

To read the rest of the column:

https://www.wsj.com/articles/what-amazons-rise-to-no-1-says-about-the-stock-market-11547226248

 

For further reading:

Books:

Benjamin Graham, The Intelligent Investor

Jason Zweig, The Devil’s Financial Dictionary

Jason Zweig, Your Money and Your Brain

Jason Zweig, The Little Book of Safe Money


Articles and other resources:

Leslie Hannah, “Marshall’s ‘Trees’ and the Global ‘Forest’: Were ‘Giant Redwoods’ Different?” (National Bureau of Economic Research, 1999)

Museum of American Finance

Data on early stock prices (EH.net) and issuance of stock by early corporations (Univ. of Pennsylvania)

Can Big Tech Stocks Grow Without Limits?

From the Archives: Baloney.com

Fat Tails, Thin Ice

A (Long) Chat with Peter L. Bernstein