Finding potential trillion-dollar companies can be as challenging as spotting a rare diamond in a sea of cubic zirconia. It’s not just about picking a handful of undervalued stocks and hoping for the best. The companies closest to achieving this remarkable feat often lurk just below the surface, overshadowed by the more high-profile giants like Apple and Microsoft.
These hidden gems, with valuations ranging from $536 billion to $856 billion, may hold the key to the next wave of trillion-dollar enterprises.
Berkshire Hathaway: Nearing the Trillion-Dollar Mark
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Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) stands at a valuation of $856 billion, making it the frontrunner in the race to join the trillion-dollar club. The conglomerate’s significant holdings in Apple position it as a formidable contender. However, beyond this, Berkshire’s approach to value investing, under the astute guidance of Warren Buffett and the late Charlie Munger, sets it apart. As market volatility escalates, the shift towards value stocks plays to Berkshire’s advantage. A strategic investment in Berkshire embodies outsourced and meticulous value stock research, thanks to the rigorously scrutinized direct investments and holdings.
Timing also plays a role in this narrative. With speculation rife about an impending game-changing announcement in Berkshire’s upcoming earnings report, seizing the opportunity to invest in Berkshire today could prove to be a shrewd move.
The Rising Star: Eli Lilly on the Trillion-Dollar Horizon
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Eli Lilly (NYSE:LLY) is not far behind Berkshire in the pursuit of trillion-dollar status, with a current valuation of $705 billion. Recent breakthroughs in two critical segments have propelled LLY on this trajectory, with no signs of slowing down.
The debut of LLY’s weight loss drug, Zepbound, in November 2023 sent shockwaves through the market, raking in a staggering $175.8 million in sales and showing no signs of losing momentum. With a third of adults overweight and two-fifths classified as obese, the national market demand for Zepbound presents a recurring revenue stream with virtually limitless potential for expansion, offering significant bottom line support for LLY.
Furthermore, a legacy drug, the diabetes medication Mounjaro, witnessed an unprecedented surge in sales. Despite logistical chain disruptions impeding its availability in late 2022, judicious pricing adjustments and stabilized supply resulted in Mounjaro contributing up to 25% of LLY’s top-line sales.
The Global Player: Taiwan Semiconductor’s Ascent toward Trillion-Dollar Territory
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Taiwan Semiconductor (NYSE:TSM) represents the lone international contender on our list of potential trillion-dollar companies. With a valuation of $536 billion, TSM is steadily carving a path toward this elite club.
