May 7, 2012

By Andrew Engel and Eric Weigel, The Leuthold Group, LLC

The following table was updated from the previously mentioned studies on long-term corporate survivorship.  It lists the largest 100 companies ranked by market cap within the S&P 500 as of March 30, 2012.  The historical S&P 500 rankings of these same 100 top companies are also depicted on the table at various timeframes back to 1960, allowing a visual of when the company first joined the top 100 list.

The turnover within this group is higher than some might guess over the past 50 years.  Some additional observations:

• Only 10 of the current biggest 100 companies remain from 1960, and over a quarter of the companies are new since the last ranking in 2007, less than five years ago.
• Apple's swift jump to #1 is similar to that of Microsoft from 1990 into the new century.
• Also of note: Amazon had the biggest bump in the last five years, moving from the 99th to 30th place.  Dell, ranking 33rd in 2001, has fallen to 100th place among the index's constituents.

 View Full Screen Image or Print PDF of Chart

 View Full Screen Image or Print PDF of Chart

Whether or not Apple hits the $1 trillion mark remains to be seen.  Without a crystal ball, the ride is sure to be exhilarating.  However, with history always as a guide, odds would suggest that Apple hysteria will indeed not be forever.  It isn't to say that it won't grow old and grey among many respectable predecessors who paved the way into the top S&P 500 elite.

Source: This article was originally published in "S&P 500's 100 Largest Companies Ranked by Market Cap", (Perception Express, April 4, 2012).

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