Apple Loses Throne as World’s Biggest Company

Apr 17, 2013

Apple Loses Throne as World’s Biggest Company

By Steven Russolillo

OB-XC753_AppleE_G_20130417173902

Apple’s market cap (in blue) compared to Exxon’s over the past two years

Apple Inc. AAPL -5.50% is no longer on top.

Wednesday’s steep slide in Apple’s shares has pushed the tech giant to second place on the list of the world’s most valuable companies. Oil giant Exxon Mobil Corp. XOM -0.61%has reclaimed the throne.

As the chart shows, both companies have been jockeying back and forth for the top spot for much of 2013. Prior to that, Apple had been the clear-cut king from January 2012 through this past January. And before that, Exxon had been the king dating back to 2006. Apple shares recently dropped more than 5% and briefly dipped below $400 for the first time since December 2011. Exxon shares are down less than 1%. One peculiar trend that has taken place this year: The S&P 500 has set new records without its two biggest components contributing to the rally. Apple shares are down 25% this year and Exxon Mobil shares are off 0.5% Meanwhile, the S&P 500 is up about 9%.That can be viewed one of two days: Either the index would be at a much higher level if its two biggest components had contributed to the rally, or these levels may not be sustainable if both companies are poised for steeper falls.

After Exxon and Apple Google Inc GOOG -1.36%Berkshire Hathaway Inc. BRKB -1.86% andWal-Mart Stores Inc. WMT -0.22% round out the top five biggest companies Microsoft CorpMSFT -0.50%General Electric Co. GE -1.47% and IBM IBM -1.10% are also within the top 10, as each have market caps above $230 billion

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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