Top 500 Companies with Time

Background

I referenced the top corporations longevity, or lack there of, in a recent podcast episode, click for the episode link.

I wanted to express how the top companies change and die off over time. Here are some links, quotes, and visuals. Here is my GPT searching for the topic.

Introduction

The Fortune 500, not the S&P 500, is a list of the top 500 US companies by revenue. The magazine Fortune has been publishing a list since 1955. 

As of 2024's list, 49 companies have been on the list every year since 1995.

The S&P 500 is an index fund of top US companies. The S&P 500 was created in 1957. Today, 53 of those original companies are still in the S&P 500.

Main Idea

Companies come and go. Less than 10% of the top 500 companies in 1955 were top 500 companies in 2024. A little over 10% of S&P 500 companies in 1957 are still top 500 companies.

There are lots of factors and disruptions, but over time, it is hard for companies, even if they buy out smaller companies and merge with other large companies to stay on top.  

The image below shows the changes in S&P 500 companies over time. At times companies stay for a long time, and then at other times they quickly disappear. If we averaged and leveled off the trend, we'd see a steady and slight decrease with time.  

For More

https://www.axios.com/2019/07/22/fortune-500-corporations-extinction

https://www.visualcapitalist.com/how-the-top-sp-500-companies-have-changed-over-time/