The World's Top 25 Defense Companies

What's happening in the Middle East with the Israel-Hamas war is incredibly complicated and polarizing.  On top of the long history, partisan interpretations, chronic conflict, and acute suffering, you're seeing propaganda being used at a scale beyond what we've seen before. 

Technology is a big driver of misinformation - and what is happening now provides an early warning of what's to come in future wars and political contests. 

While the topic of Israel and Hamas is beyond the purview of this blog/newsletter - the impact of war on markets is not.

My heart is with all impacted, and I'm never rooting for war or the death of innocent civilians. 

With that said, war seems to be a fact of life.

The most powerful countries in the world spend billions of dollars on defense a year. 

In light of this, VisualCapitalist put together a chart identifying the top 25 defense companies in the world.  Many of these have seen massive spikes in price in the past few months.  I was surprised by how many of the companies I didn't recognize.

 via VisualCapitalist

The U.S. unsurprisingly tops the list, with Lockheed and RTX (formerly Raytheon) taking the top two spots. 

While we don't usually think of some of these companies as defense contractors, Airbus produces multiple drones and transports, Rolls Royce is a supplier of aircraft and naval engines, and Honeywell is actually involved not just in aerospace - but actual space. 

Understanding where and how companies generate revenue (as well as comprehending the relevant competitive landscapes and cooperative ecosystems) are crucial activities regardless of investment strategy.

I believe it's easier to predict human nature than it is to predict technology.  There is a reason that new technology often flows into porn, gambling, and military earlier than other areas ... the reason is that it's so easy to monetize there. We know opportunity often rises from pain and conflict - so it's still valuable to understand these concepts and figures. 

Hope that helps.