We Aussies are mostly preoccupied with the S&P/ASX 200 Index (ASX: XJO) and the companies within it for our day-to-day investing activities. And fair enough too. We are a relatively small country, but we have every right to be proud of our companies and the wealth they have created for generations of Australian families.
But when it comes to the global stage of investing, even ASX blue-chip shares like Commonwealth Bank of Australia (ASX: CBA), Telstra Corporation Ltd (ASX: TLS) and Woolworths Group Ltd (ASX: WOW) are relatively insignificant. I doubt too many investors in Hong Kong, the United Kingdom or the almighty United States of America really care what these companies are doing.
Last month, I looked at the top 10 companies that move our ASX 200 index. But today, I want to take things up a notch and take a look at which companies move global markets. I'll be drawing from the Vanguard MSCI Index International Shares ETF (ASX: VGS) for this exercise. VGS tracks the MSCI World Index, which tracks the largest companies across the advanced economies of the world, including the USA, Japan, Canada, the UK and Europe.
1) Apple
Everyone knows Apple. The iPhone is perhaps as ubiquitous a product as any – I think almost every person on the planet would know what an iPhone is and how it works. And this is perhaps why Apple is the largest publicly listed company in the world right now. The company's core product remains the iPhone, but its iPad, Mac, services (like Apple Music and TV) and accessories lines are also formidable in their own right
2) Microsoft
Microsoft is a rare breed of company. It remains the only US-listed company to still be in the top 10 American businesses by size in the year 2000 and today in 2020. Its Office suite of products is also renowned around the world, as is its flagship Windows operating system. Microsoft is also heavily invested in the gaming space, where its Xbox consoles remain industry-leading. Microsoft is the 'original tech blue chip' and it's not a company I would want to bet against.
3) Amazon.com
Amazon is perhaps one of the most phenomenal growth stories in corporate history. Just 20 years ago, this was a company with a share price of around US$42.50. Today, those same shares of this e-commerce behemoth will set you back around US$2,890 – a staggering 6,700% return. No wonder Amazon's founder Jeff Bezos is the richest man in the world right now.
4) Facebook
Again, everyone knows Facebook and its ambitious and talented (if not controversial) founder and CEO Mark Zuckerberg. But you may not know that Facebook also owns the Messenger, Whatsapp and Instagram platforms as well. The company has also been working on a cryptocurrency of its own as well as a line of virtual reality equipment known as Oculus. Like Zuck or not, Facebook shares are certainly written off at your own peril.
5) Alphabet
Facebook's largest competitor in the world of online advertising is the search engine pioneer known as Alphabet. Alphabet is best known for its Google subsidiary, which holds a fairly monopolistic grip on the global search engine market (outside China anyway). But the company also owns video platform YouTube, the G suite platform of productivity apps, the Android mobile operating system, and (of course) Google Maps.
6) Johnson & Johnson
Johnson & Johnson is by far the largest healthcare company in the world. You might know it from its Band-Aid and Listerine personal hygiene products, but that's just the tip of this company's iceberg. It is also heavily involved with medical equipment research and manufacturing and also makes pharmaceuticals and other medicines.
7) Visa
Visa is a global payments giant. Its devilishly simple business model of clipping the ticket of every transaction going through its network has transformed this former collective into a global payments giant. Chances are every reader gracing this article with their presence has a card in their wallet (or on their phone) with a Visa logo in the corner. Think about that scale, and you have a fair idea of how large this company is.
8) Nestlé
Our first non-American company is this Swiss global foods and drinks titan. Nestlé has its finger in so many pies it's hard to keep track of them all. Nescafe is probably Nestlé's most successful product line, but there are many others that you might not have even heard of. A large presence in an evergreen industry is never a bad thing, so it's no surprise Nestlé joins our market movers list.
9) Procter & Gamble
Like many large conglomerates, you might not have directly heard of Procter & Gamble. But you will almost certainly have heard of some of their brands. This company is a consumer staples giant, with a truly global market. Some of its brands include Gillette razors, Tide laundry detergent, Old Spice deodorant, Fairy dishwashing liquid and Oral-B toothpaste.
It wouldn't be uncommon to find at least one of Procter & Gamble's products in any Australian household. Think about that in a global context, and we can see why P&G makes the list.
10) JPMorgan Chase & Co
JP Morgan is the largest bank in the United States and one of the largest banks in the world. Think of it as a quasi-equivalent of one of our own ASX big four banks, for the US. It has extensive retail banking operations through its Chase branches as well as significant presence in commercial banking as well. It's also a company with a certain myth surrounding it. J.P. Morgan was a 'titan of industry' back in his day and is still held up today as one of America's capitalistic forefathers.
