Ever Wonder Why We Hear So Much About Them

Why are so many of the same companies mentioned in the news day in and day out?

The Scatterplot below might help explain why:

The chart shows all 500 companies of the S&P 500 represented by light purple circles. In contrast, some of the largest companies are displayed in other colors. These highlighted companies each earned (Net Income) $20+ Billion dollars over the last 12-months and several are worth over a Trillion dollars. 

• In the last 12-months, Apple's profits are $100+ Billion dollars and is valued at over $2.5 Trillion dollars.
• Berkshire Hathway, which is run by Warren Buffett, earned over $80 Billion and is worth over $500 Billion. 
• Google and Microsoft each generated net income of over $70 Billion and each are valued well over $1 Trillion dollars. 
• JPMorgan and Bank of America combined generated over $60 Billion in net income and collectively worth over $600 Billion dollars. 
• Amazon is currently worth $1.25 Trillion and made over $20 Billion dollars.

And now you know why these companies are so prominently featured in the news. They are behemoths in every sense of the meaning. When they hire or fire, enter new markets, create new products, build new buildings, they have a deep and wide impact within their respective industry. 


-Paul R. Rossi, CFA


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