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What Do The Biggest Companies Have in Common?
By The Smart Investor  •  May 17, 2021
As an investor, I am constantly on the hunt for what my blogging partner Ser Jing and I call “compounders.” These are companies that are able to grow their cash flows at an exponential rate by reinvesting their cash. This is where the truly great companies stand out. They have great capital allocators at the helm who are able to reinvest their cash at high rates of return. The biggest companies in the world all seem to share this common trait. Let’s take a look at the three largest companies in the US stock market in terms of their market capitalisation. Growing beyond computers Take Apple Inc (NASDAQ: AAPL) for example. It feels like a long time ago that Apple was merely a computer company. The company which used to sell only computers pivoted to sell smartphones. This revolutionised the company and set the stage for it to become the most valuable company in the world....
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By The Smart Investor
The Smart Investor is co-founded by David Kuo, Joanna Sng, and Chin Hui Leong. The company was formed in late 2019 from the ashes of the Motley Fool Singapore. The Smart Investor believes that everybody can learn how to invest, smartly. We aim to educate people on how to invest smartly by providing investing education, stock commentary and market coverage for Singapore and around the world.
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