Investing a dollar in each of these companies at their start would be worth millions now

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Bet you're kicking yourself for not investing $1 in Amazon in 1997.

Investors have learned that the market value of a firm goes beyond tangible earnings. Indeed, reported earnings, cash flow, and profitability have been found to predict about 50% of a firm’s market value.

Seeking lead indicators for tangible and intangible results may come from identifying how organizations operate. Traditionally, the concept of “organization” was a pyramid or hierarchy with an internal focus where clear roles, rules, and routines clarified who does what work when and how. But in today’s fast-changing, technology-enabled work, organizations need to be able to change or they die .

But how does an organization go about reinventing itself? We have studied and crystalized the best elements from some of today’s nimblest and fastest-growing big companies, including Amazon.com AMZN, +0.63% , Facebook FB, +0.45% , and Alphabet GOOGL, -0.50% in the U.S.; Alibaba Group Holding BABA, +1.04%, Huawei Technologies, and Tencent Holdings in China 700, +1.28% , and Tencent subsidiary Supercell in Europe.

We also discovered that these MOEs had enormous success both in growth and market value. The table below shows how the iconic organizations we studied have performed since their conception.These are remarkable results. A dollar invested in each of these MOE companies on the day of its founding would be worth millions today.

 

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I wasn't born yet

naw because i was a child

or Bitcoin in '09

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