Nat Kellogg, CFA
Director of Manager Search, Managing Partner
Apple and Microsoft are the two largest companies (by market value) in the United States and the only two U.S. listed firms with a market capitalization over $1 trillion. Both companies have been standout performers in 2019, with Apple’s market value increasing 58.6% this year through the end of November, while Microsoft’s market value has increased 47.1% over the same period. The combined market value of the two companies now stands at $2.3 trillion dollars and together they represent roughly 9% of the total value of the S&P 500 Index. To put the size of these two businesses in perspective, this week’s chart of the week shows the combined market value of Apple and Microsoft compared to the entire Russell 2000 index of U.S.-based small cap stocks. At the end of November the combined value of the two companies was essentially equal ($2.342 trillion vs. $2.367 trillion for the Russell 2000) to the market value of the entire small cap index. The stellar performance of Apple and Microsoft has a been a large driver of the outperformance of large cap stocks in the US over the last decade. But with the 2020’s approaching, maybe small caps are poised for a better decade ahead.
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