General Motors Controlled One-Third of Market Value in 1932; Shares Up 27.2%
General Motors was one of seven companies controlling one-third of U.S. market value in May 1932, matching current concentration levels of mega-cap tech firms. Over the past six months, General Motors shares gained 27.2%, trading at a forward price/sales multiple of 0.36 compared with Ford’s 0.28 and Tesla’s 14.24.
1. Historical Market Concentration
General Motors was one of seven firms that together controlled roughly one-third of the total U.S. equity market in May 1932, highlighting that extreme market concentration has precedent long before passive index investing. This historical parallel underscores that today’s tech-heavy index weights mirror patterns seen nearly a century ago.
2. Recent Share Performance and Valuation
In the last six months, General Motors shares climbed 27.2%, outpacing Ford’s 3.7% gain. The stock trades at a forward price/sales multiple of 0.36, ranking between Ford’s 0.28 multiple and Tesla’s 14.24, reflecting a moderate valuation within the auto sector.