Wednesday, April 24, 2019

10 Largest Companies in the world. Wealth created by Top 5 in 5 years. Should you invest in stocks of these companies?

The largest companies in the world by market cap are

LARGEST COMPANIES IN THE WORLD - FIRST QUARTER OF 2019
(SOURCE : Wikipedia)
(Market Cap in USD Millions)


Most of these companies - especially the first five have remained the largest for more than 5-10 years.  They have delivered extraordinary returns over the past 10-15 years.  Even in the last 5 years their returns have been very good.

These companies have created market leadership in their business category.  They continue to provide  significant value to their clients because of their superior (many times unmatched) business models and delivery.  This is what is critical.  As long as continue to do that they will continue to create wealth for their shareholders.

These companies are so large that specific country risks do not impact them as much.  They also largely remain insulated or attest are less impacted by change in global commodity prices e.g. Crude Oil etc.

Below are the return charts of these companies over last 5 years
(Source : Google)


APPLE is 2.46 times in last 5 Years 



--X--


ALPHABET is 2.43 times in last 5 years 


--X--


MICROSOFT is 3.16 times is last 5 years 


--X--


AMAZON is 6.25 times in last 5 years


--X--


Facebook is 3.03 times in last 5 years 

For most investors in the Indian markets such type of stocks can offer diversification. 


(DISCLAIMER:  FOR INFORMATION PURPOSES ONLY. )