What Was the Biggest Company in History? - $7.9 Trillion!
TLDRColdFusion's 'How BIG' series explores the most valuable companies ever. The Dutch East India Company tops the list, valued at $7.9 trillion in 1637, shaping the world with its trade dominance and colonial power. It pioneered public trading but fell due to the tulip bubble's burst, reflecting human greed and the perils of speculative markets.
Takeaways
- 📈 The script discusses the 'How BIG' series which explores the size and scope of different companies, focusing on the biggest company of all time.
- 💰 Apple reached a valuation of one trillion dollars, but the video delves into companies with even larger historical valuations.
- 💡 The script highlights the top 8 most valuable companies in history, including Microsoft, Apple, Standard Oil, PetroChina, and Saudi Aramco.
- 🕰 It emphasizes the South Sea Company and the Mississippi Company, which had astronomical valuations in 1720 due to speculation on trade between the American continents.
- 🌍 The Dutch East India Company is revealed as the most valuable company ever, valued at $7.9 trillion in 1637, and its impact on shaping the modern world.
- 🚢 The Dutch East India Company was a monopoly in Asian trade, becoming a dominant player in the spice trade between Europe and Indonesia.
- 🏛 It was the first company to go public on the world's first Stock Exchange, growing to employ 70,000 people at its peak.
- 🛡 The company had its own army, the power to wage war, negotiate treaties, mint coins, and establish colonies, effectively functioning as a state.
- 🌷 The company's peak wealth surprisingly came from tulips, which were the center of the first financial bubble in history, known as Tulipmania.
- 📉 The tulip bubble eventually burst in 1636, leading to a market crash and economic downturn in Holland.
- 🔍 The script concludes with a reflection on human nature and greed, and the importance of looking beyond perceived value to the underlying worth of things.
Q & A
What is the 'How BIG' series by ColdFusion TV about?
-The 'How BIG' series by ColdFusion TV explores the size and scope of different companies throughout history, focusing on their valuations and impacts on the world.
Why was a new video created instead of updating the 'How BIG is Apple?' video?
-A new video was created because Apple had passed the one trillion dollar valuation mark, and the creator wanted to delve into the broader question of the biggest company of all time.
What was the valuation of Microsoft in 1999 at the height of the dot-com bubble?
-Microsoft was valued at $0.9 trillion in 1999 at the height of the dot-com bubble.
What is the significance of Apple's valuation in 2018?
-Apple's valuation in 2018 reached one trillion dollars, largely due to the persistent popularity of the iPhone, which makes up about 70% of the company's profits.
Why was Standard Oil's valuation in 1900 so high?
-Standard Oil was valued at one trillion dollars in 1900 due to its monopoly on the American oil industry before being broken up by the government.
What event led to PetroChina's peak valuation in 2007?
-PetroChina's peak valuation of $1.4 trillion in 2007 occurred right at the peak of oil prices, just before the Global Financial Crisis.
Why is Saudi Aramco's valuation considered so significant?
-Saudi Aramco's peak valuation of $4.1 trillion in 2010 is significant as it represents one of the highest valuations in history for a company.
What historical event is associated with the South Sea Company and the Mississippi Company in 1720?
-Both the South Sea Company and the Mississippi Company were involved in a speculative bubble in 1720, centered around the promise of trade between North and South America, which led to their astronomical valuations.
What was the Dutch East India Company's peak valuation and in what year did it occur?
-The Dutch East India Company had a peak valuation of $7.9 trillion in 1637.
How did the Dutch East India Company shape the geographical knowledge of the modern world?
-The Dutch East India Company conducted extensive sailing expeditions that led to the discovery of new lands, thus contributing to the geographical knowledge of the modern world.
What was the most profitable business for the Dutch East India Company and why was it significant?
-The most profitable business for the Dutch East India Company was the trade of tulips, which led to the infamous 'Tulipmania', the first recorded financial bubble in history.
What caused the collapse of the tulip bubble in the Dutch East India Company's era?
-The tulip bubble collapsed in late 1636 when buyers in North Holland refused to show up to tulip bulb auctions, signaling that they would not pay higher prices, which led to a panic sell-off and a market crash.
What was the ultimate fate of the Dutch East India Company?
-The Dutch East India Company remained powerful until the mid-1700s but was eventually dissolved and overtaken by the government in 1799 due to bad management and a war between the English and the Dutch.
What lesson does the story of the Dutch East India Company impart about human nature and the financial markets?
-The story of the Dutch East India Company highlights the enduring nature of human greed and the cyclical patterns of financial bubbles, emphasizing the importance of looking at the underlying value of something rather than its perceived worth.
Outlines
🏆 The Ascendancy of the Dutch East India Company
This paragraph introduces the 'How BIG' series by ColdFusion TV, which explores the size and influence of various companies throughout history. The focus shifts to the Dutch East India Company, recognized as the largest company of all time, with a valuation of $7.9 trillion in 1637. The company's impact was so profound that it shaped the world's geography. The video promises to delve into the company's history, starting from its inception during the Dutch golden century and its monopoly on Asian trade, to its transformation into a state-like entity with its own army and colonies. The summary also touches on the company's role in pioneering the stock market and its eventual decline due to mismanagement and war.
🌷 The Tulip Bubble: A Symbol of Human Greed and Speculation
The second paragraph delves into the Dutch East India Company's most profitable business, which surprisingly was the trade of tulips. The narrative explains how tulips, introduced from Turkey to Amsterdam, became a status symbol and the catalyst for the first financial bubble in history. The Dutch, being pioneers of modern finance, created a futures market for tulips, allowing year-round trading based on future prices. This led to rampant speculation and a dramatic increase in tulip prices, with some traders earning enormous profits. The bubble eventually burst in 1636 when buyers stopped showing up for auctions, causing a market crash that lasted for years and led to significant economic repercussions. The Dutch East India Company incorporated the tulip trade, which contributed to its peak valuation. The paragraph concludes with lessons on the importance of evaluating underlying value over perceived worth and the impact of the Dutch East India Company on modern geography and finance.
Mindmap
Keywords
💡Trillion dollar valuation
💡Dot-com bubble
💡Standard Oil
💡PetroChina
💡Saudi Aramco
💡South Sea Company and Mississippi Company
💡Dutch East India Company
💡Tulipmania
💡Futures derivative market
💡Economic crash
💡Human nature and greed
Highlights
Apple reached a one trillion dollar valuation mark, prompting an exploration of the biggest companies of all time.
Microsoft was valued at $0.9 trillion in 1999, influenced by the dot-com bubble.
Apple's 2018 valuation at one trillion dollars was attributed to the iPhone's significant contribution to profits.
Standard Oil's 1900 valuation of one trillion dollars was followed by its breakup into major American oil companies.
PetroChina's peak valuation in 2007 at $1.4 trillion coincided with high oil prices before the GFC.
Saudi Aramco held the fourth position with a peak valuation of $4.1 trillion in 2010.
The South Sea and Mississippi companies had speculative valuations of $4.3 trillion and $6.5 trillion in 1720, respectively.
The Dutch East India Company topped the list with a 1637 valuation of $7.9 trillion.
The Dutch East India Company's monopoly in Asian trade and its role in shaping global geography.
The company's pioneering status as the first to go public on the world's first Stock Exchange.
At its peak, the Dutch East India Company employed more than 0.01% of the world's population.
The company's own army and governmental powers, including the ability to wage war and mint coins.
The company's transformation from a corporate entity to a state and then an empire.
The Dutch East India Company's most profitable business was the tulip trade, leading to the tulip bubble.
The tulip bubble's role in the first financial bubble in history and its impact on the Dutch economy.
The crash of the tulip bubble in 1636 and its aftermath on the Dutch financial system.
The eventual dissolution of the Dutch East India Company in 1799 and its transition into Dutch colonies.
The moral of the story: the importance of underlying value over perceived worth in financial markets.
Transcripts
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