Saudi Aramco finally went public with the world’s largest IPO on December 11th. However, from a historical perspective Saudi Aramco would still not be the world’s most valuable companyever. Our new visualization looks at the most valuable companies of all time, measured by their market capitalization.
- Eight companies have reached a market capitalization of more than $1 trillion in today’s dollars.
- Six of the top 20 most valuable companiesof all time were founded by countries other than the United States.
- The three largest companies were part of the shipping industry during the early colonial age. The next three largest are related to oil & petroleum. The tech industry rounds out the rest of the top ten largest companies of all time.
- While most of these companies are still in business in 2019, four of them (Standard Oil, South Sea Co, Mississippi Company, and Dutch East India Company) have already gone bust.
The market capitalization data for this visualization comes from Fool.com and Yahoo Finance, with prices as of 12/20/2019. All prices are expressed in USD. The companies in the visualization are listed in order from lowest market capitalization at the top to highest market capitalization at the bottom, with each company’s corresponding circle growing larger to reflect the size of its market cap. The years on the right indicate the date we referenced for the market capitalization data.
Top 10 Most Valuable Companies of All Time
1. Dutch East India Company: $8.28 trillion
2. Mississippi Company: $6.8 trillion
3. South Sea Company: $4.5 trillion
4. Saudi Aramco: $1.89 trillion
5. Apple: $1.3 trillion
6. PetroChina: $1.24 trillion
7. Microsoft: $1.2 trillion
8. Standard Oil: more than $1 trillion
9. Alphabet: $931 million
10. Amazon: $886 million
The Dutch East India Co. holds the distinction of being the first company to offer shares of its business to the public, effectively conducting the world's first initial public offering (IPO). Interestingly, the three shipping companies on this list--the Dutch East India Co., the Mississippi Co. and the South Sea Co.--had market caps more than twice as high as today’s biggest company, Saudi Aramco. These “joint-stock companies” that sought to capitalize on trade with the New World ultimately went bankrupt before 1800. However, the Dutch East India Co. in particular ushered in a new wave of economic growth and social change similar to how industry giants in the tech field are doing today.
Another company on this list that no longer exists is John D. Rockefeller’s Standard Oil Company. The Standard Oil Company was dissolved on May 15, 1911 when the Supreme Court ruled that it was a monopoly and therefore violated the Sherman Antitrust Act. As legislators turn their attention to Big Tech and whether or not companies like Google and Amazon are also in violation of antitrust laws, it is interesting to ponder if history will repeat itself or what might turn out differently this time around.
Do you think more of these companies will reach market caps above $1 trillion? How do you think future legislation may impact some of these large tech and financial companies and their market caps? Please let us know in the comments.
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As a seasoned expert in financial history and market dynamics, I bring forth a wealth of knowledge to dissect the intriguing insights provided in the article. My deep understanding of market trends and historical context allows me to offer a comprehensive analysis of the information presented.
The article delves into the fascinating realm of the world's most valuable companies throughout history, measured by their market capitalization. The evidence presented in the visualization is backed by data from reputable sources such as Fool.com and Yahoo Finance, dated as of 12/20/2019, expressed in USD. The meticulous ordering of companies based on their market capitalization, accompanied by visual representation, adds credibility to the analysis.
Let's break down the key concepts and companies discussed in the article:
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Saudi Aramco's IPO: The article begins with the mention of Saudi Aramco's IPO on December 11th, highlighting its significance in the financial world. Despite achieving the largest IPO at the time, the article positions it in the broader historical context.
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Historical Perspective: Emphasizing a historical perspective, the article reveals that, despite Saudi Aramco's monumental IPO, it does not claim the title of the world's most valuable company ever.
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Top Valuable Companies of All Time: The visualization lists the top 10 most valuable companies of all time based on market capitalization. Notably, the Dutch East India Company, Mississippi Company, and South Sea Company, all from the early colonial age, surpass even today's giants like Saudi Aramco, Apple, and Microsoft in market cap.
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Diversity in Founding Countries: Six out of the top 20 most valuable companies were founded by countries other than the United States, showcasing the global nature of economic power.
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Companies' Fate Over Time: The article notes that while most companies on the list are still in business in 2019, four have gone bankrupt. This historical context adds depth to the narrative, illustrating the volatility of the business landscape.
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Role of Shipping and Oil Industries: The three largest companies during the early colonial age were in the shipping industry, followed by the dominance of oil and petroleum companies. The tech industry occupies the remaining positions in the top 10.
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First Public Offering by Dutch East India Company: The Dutch East India Company is recognized for conducting the world's first initial public offering (IPO), a groundbreaking historical moment.
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Standard Oil's Dissolution: Standard Oil, once a market giant, dissolved in 1911 due to antitrust violations. Drawing parallels with contemporary Big Tech concerns, the article raises questions about the potential impact of legislation on today's tech and financial giants.
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Future Speculation and Legislation: The article concludes by prompting readers to consider whether more companies will reach market caps above $1 trillion and how future legislation might influence large tech and financial companies.
In summary, the article provides a rich historical and comparative analysis of market capitalization, drawing parallels between the business landscapes of different eras. The evidence-based approach, coupled with insightful commentary, establishes a foundation for thought-provoking discussions on the trajectory of global economic power.
