In the world of investments, identifying and monitoring trends and potential across various industries is key to finding success. One of the best ways to accomplish this is by looking at the world’s biggest public companies and observing how they’ve held their positions or emerged despite the tumultuous times caused by the pandemic.
While some mainstays have held their positions as top dogs throughout 2022, we’ve also seen new faces make it into the top 10 despite challenging and disruptive market conditions. Here are the top 10 biggest public companies in the world in 2022, ranked by market capitalization.
|Johnson & Johnson
Apple, the most recognizable name on the list, maintains its position as the world’s largest publicly-traded company with an astonishing market capitalization of $2.3 trillion. Microsoft follows closely behind with a market capitalization of $1.9 trillion. The third largest publicly-traded company globally is oil giant Saudi Aramco, with a market capitalization of $1.8 trillion, boosted by the recovery of oil prices. It is the only non-U.S. company in the top 10.
Alphabet (best known for Google) and Amazon trail behind with market capitalizations of $1.2 trillion and $924 billion, respectively. Despite founder Elon Musk’s mixed bag of PR in 2022 for various reasons, Tesla ranks 7th, largely due to the growing demand for electric cars, which justified the company’s decision to open two new factories in 2022 and increase production capacity massively.
Legendary investor Warren Buffett’s Berkshire Hathaway ranks 6th, while two healthcare companies, UnitedHealth Group (8th) and Johnson & Johnson (9th), and Visa (10th) round out the top 10 list.
With all of these movements across the top 10 list, what can private equities learn and grow from this information? While private equities may not invest in these juggernaut companies now, there are opportunities for massive growth by investing in smaller companies tied to the performances and products of these tech giants, or by exploring spin-offs and acquisitions.
For instance, Alphabet, the parent company of Google, has been actively investing in smaller companies to broaden its reach and diversify its revenue streams. Private equity firms can take advantage of this trend by investing in these smaller companies and profiting from Alphabet’s growth.
To elaborate on this further, the increasing popularity of electric vehicles has led to Tesla’s impressive growth. While private equities will not invest in Tesla at this point, the demand for electric vehicles also has a trickle-down effect for smaller companies that provide components and spare parts for electric vehicles or charging infrastructure, which private equities can invest in.
Lastly, the recent pandemic has accelerated the shift towards e-commerce and digitalization, and companies that have adapted have seen significant growth, such as Shopee and Lazada. As a result, private equity firms can identify opportunities in e-commerce and digitalization by investing in logistics and supply chain companies, payment processors, and software providers.
In conclusion, the list of the biggest public companies in the world in 2022 highlights the importance of keeping up with global economic trends and identifying potential investment opportunities. Private equity firms can still benefit from investing in smaller companies that leverage the successes of these tech giants or that may be potential disruptors in the future. By staying up-to-date with the latest trends, private equity firms can take advantage of the opportunities that arise.
One of the best ways to do that is by sticking close to us with PEGH, where we take a close look at various investment opportunities and growing consumer trends, especially in Malaysia and Southeast Asia as a whole.