I found this super interesting article while searching for something completely different and the results simply astounded me. Unlike the Rothschild story of wealth, and various other conspiracy theories surrounding it, this one is backed by meticulously detailed research. The full paper can be found here
What it says is that most of the world’s wealth (60%) is concentrated in the hands of just a few institutions and have their tentacles spread across. So there’s this core of 1318 companies which have interlocking ownerships and each of these have connections to 20 companies on average.
Forbes has also published an article based on the study. What is interesting to observe is that this paper is nearly 6 years old and the data set is from 2007! But that simply doesn’t take anything away from the findings surrounding the concentration of wealth. Nomura and Vanguard are the companies I have an affinity for in a strange way I can’t explain in this list. The fascination probably comes from the fact that both have some great sounding names and are also actively involved in creating wealth for others.
The dataset suggests just one Chinese company though- China Petrochemical Group Company in the top 50. It is now the 5th largest company in the world in terms of absolute revenues earned, so am also guessing the market capitalization would be equally massive. I would be highly interested to observe how the current scenario looks like! How many Chinese firms have joined the fray – with the opening up of the Arctic Northwest passage, the building of the new Silk Road and the China Pakistan Economic Corridor? A scenario analysis is probably due!