Nine Traits Shared by Most Valuable Companies (And Stocks) in the World

Wall Street was buzzing in the last week of October as news broke that Nvidia (NVDA) had overtaken Apple (AAPL) as the “most valuable company” in the world, as ranked by stock market value.

The move may be temporary, but it’s official for now, as Nvidia’s stock market value crested $3.53 trillion in mid-October, which is moderately higher than Apple’s $3.52 trillion, as calculated by the London Stock Exchange.

Even so, the ripple effect on the broader stock market when top-tier titans see their value grow is immense, with Nvidia, Apple, and Microsoft (MSFT) comprising about 20% of the overall S&P 500 Index monetary value.

On the one hand, the shift signals that AI chips are the new currency as smartphones and high-end digital watches take a back seat—at least for now.

On the other hand, the top-of-the-deck shuffle represents an opportunity for Main Street investors to review the tenets, characteristics, and strategies that put companies Nvidia and Apple at the pinnacle of corporate excellence, at least from a capital appreciation point of view.

“All of the top corporate money makers make a lot of cash, plain and simple,” says Paul Gabrail, founder and host of Everything Money in Richfield, Oh. “Investors need to know that the ‘most valuable’  designation is driven by stock price and stock price is driven (in the short run) by people’s overall feelings about the stock.” 

“Top 10” Most Valuable Companies on Earth (As of Oct, 2024)

Company	Market Value
Nvidia (NVDA)	$3.53 trillion
Apple (AAPL)	$3.52 trillion
Microsoft (MSFT)	$3.21 trillion
Nvidia (NVDA)	$3.53 trillion
Alphabet (GOOG)	$2.096 trillion
Amazon (AMZN)	$1.9 trillion
Saudi Aramco (2222.SR)	$1.74 trillion
Meta Platforms (META)	$1.502 trillion
Taiwan Semiconductor (TSM)	$1.01 trillion
Berkshire Hathaway (BRK-B)	$982 billion
Tesla (TSLA)	$840 billion

Common Factors That Apply to the World’s Most Valuable Companies

Stock price alone doesn’t define the “most valuable” status of Nvidia’s and Tesla’s of the world – other key metrics apply, too. These are at the top of that list, and smart investors should get to know them.

Innovation. Companies that continually target what the public wants and deliver the goods are always a good market bet for investors – and Nvidia and Apple are good examples of that.

Whenever I think of Nvidia or Apple, the term that springs to mind is “innovation,” says Cache Merrill, a technology entrepreneur, acquisitions expert, and the founder of Zibtek in Salt Lake City, Utah. “Such organizations not only respond to market forces; instead, they influence them.”

For example, Nvidia saw AI coming, while Apple mastered the art of building a frictionless ecosystem. “Their strategies are based on the early adoption of technological advances coupled with a good execution strategy in terms of resources and time,” Merrill notes.

They have a vision. Another characteristic of top-value companies is their ability to see the future and capitalize on that vision.

“The most successful companies are best prepared in advance for the future development of their products,” Merrill says. “For Nvidia, investing in GPU technology early was not just for gaming; it was for the development of AI and data science.”

Additionally, Apple didn’t just see the market only in communications devices, and it embraced the whole lifestyle concept. “These companies love to make larger-than-life bets on huge, disruptive trends, and it works for them,” Merrill adds.

They grow. Standing still is not a tenet of a highly valuable company.

“Companies like Nvidia and Apple regularly demonstrate historical growth,” Gabrail says.  “NVDA should see big growth for a few more years while Apple is an amazing brand with big brand loyalty, however the growth story plays out.”

They invest. Top-tier market share firms also make plenty of room for research and investment – and stay patient.

“The more top companies invest in high-yielding growth for the future, the better they do,” Gabrail says. “Companies like Tesla and Amazon invested heavily early on and sacrificed profits to grow.”

Then there’s Berkshire Hathaway, which doesn’t focus on short-term results. “They care about long-term wealth and value,” Gabrail adds.

They stomp the competition. Top market value companies care for their customers, who tend to stick around for the long term.

“For instance, Apple does a great job at growing a loyal customer base while continuing to innovate and set the bar by building a unified, collaborative framework,” says Dre Villeroy, CEO at Beyorch, a private equity firm in Los Angeles, Cal. “The customer service is so good that many people don’t even consider other phone companies like Android because Apple has made it so hard to compete.”

They take risks. Top management teams understand when to make moves when to be more cautious, and when to take risks.

“In Nvidia’s case, the management anticipated the AI takeover,” Villeroy says. “Meanwhile, Apple is a perfect example of brand appeal through calculated leadership decisions.”

They don’t settle for less. The market moves rapidly enough for any business to stay still, and that is where even good organizations collapse, Villeroy notes.

“Watching technological innovations and how businesses are setting up for future expansion, rather than just the current stance, is vital for new investors,” he says. “Paying attention to businesses prioritizing research and development, flexibility, and market intelligence is frequently worthwhile. Investing in businesses with potential in developing industries before they become well-known is best.”

They have great management. Top management teams also play a critical role at the market-dominating giants.

“Strong leadership makes bold but calculated decisions to maintain their leadership positions and pivot when necessary,” says Cliff Ambrose, founder and wealth manager at Apex Wealth in Boston, Mass.

Good managers also avoid major missteps, like overextending into unprofitable areas or failing to adapt to market shifts. “That helps these companies retain their top positions,” Ambrose says.

They create demand when needed. Top market companies know how to satisfy consumer/business needs with a superior product or service.

“Yet, oftentimes a better strategy is to create a product or service that consumers were not necessarily demanding, and creating demand that previously did not exist,” says Dave Novosel, CFA, senior bond analyst at Gimme Credit in Orland Park, Ill.  “Technology firms often do this, which is why so many highly valued companies are in the technology segment.”

The Takeaway on Identifying Great Companies

The task is straightforward for investors looking to peg the next Nvidia or Tesla: learn what makes a highly profitable company and buy shares in it as soon as possible.

“New investors looking to tap into high-growth potential should focus on companies with strong fundamentals, a clear vision, and a track record of consistent innovation,” Ambrose says. “Watching for signs of growth in emerging fields, such as AI, green energy, or advanced computing, can offer insights into companies poised to rise in value before they reach the top.”

Like the booming companies they covet, Market mavens need to have a vision, too.

“Watching technological innovations and how businesses are setting up for future expansion, rather than just the current stance, is vital for new investors,” Villeroy advises. “Paying attention to businesses prioritizing research and development, flexibility, and market intelligence is frequently worthwhile.”

Additionally, look for not the companies that are merely creating new products but who are leading the evolution of their industries.

“These trends have real application and should be incorporated in one’s business model, as with Nvidia with AI or Tesla with electric cars,” Merrill says. “The important thing is to count on the capability of the management to be ahead of the curve and execute well-defined plans.”