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Industries that scored the largest revenues in 2017

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The largest industries in the world today have a huge influence in the global economy. Aside from generating massive revenues of over $27 trillion, these industries have also raked in a total of $1.5 trillion in profits (based on 2016 data) – and their successes don’t end here. Inevitably, they have become important components in many investment portfolios, including discretionary accounts from offshore investment firms such as LOM Financial.

Based on Fortune 500’s ranking which was released after the end of the different sector’s respective fiscal years, these are the top industries with the highest revenues in 2017.

Banking and Finance Industry

The global banking and financial services sectors represent one of the world’s largest grossing industries.  According to the said ranking, there are 55 companies whose performances from the previous year earned their spots in Fortune’s top 500 money-makers. Included in the top ten is America’s Berkshire Hathaway with a revenue of $223.8 billion.

Automobile Industry

Another industry that’s in the ranks of the biggest industries in terms of revenue is the Automobile Industry, with 34 companies making it to the list. Examples are Japan’s Toyota Motors (with over $254.7 billion in revenue) and Germany’s Volkswagen with a revenue total of $240.2 billion.

Petroleum Industry

Not surprisingly, the petroleum industry is home to the top companies in 2017 based on their revenues. In this particular industry, 28 companies were recognized by Fortune 500. Ranked fourth is China’s Sinopec, with a revenue of $267.5 billion, and Netherland’s Royal Dutch Shell with a $240 billion on the seventh place.

While the retail industry did not make it to the top three highest grossing industries, WalMart Stores actually bagged the top rank as the leading company with the largest revenue in 2017.

What’s inside the most profitable investment portfolios today?

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Portfolio diversification is one of the most effective investment strategies that you should turn to especially if you’re new at investing. However, diversification does not only mean putting different entries into your folder but it also involves carefully balancing and choosing which sectors and specific industries can help you reach long-term financial goals.

Here are the top industries that constitute the most profitable investment portfolios:

Industries under the Technology Sector

Technology companies constitute the most popular sector to invest in, especially with the rise of several new industries that are transforming how people work and live – especially in this booming information age.  Artificial Intelligence, the Internet of Things and even Autonomous Vehicles are part of the new wave of innovative industries that investors should consider for a balanced portfolio. Whether it’s investing in shares of this growing sector such as startups or opting for already established companies, you’ll be on the right track.

Industries under the Health Care Sector

This particular sector plays a vital role in responding to the demands of an aging population through leading innovations and life-saving products and services offered by the different health care industries. From biotechnology, the insurance industry, the pharmaceutical industry, hospital conglomerates, and other healthcare companies, including these investment options in your portfolio is a wise move.

Industries under the Financial Sector

The financial services sector covers a long list of industries that include financial organizations, banks, insurance companies, brokerage firms, credit card companies, and even offshore portfolio management firms like LOM Financial. The financial sector is your best bet if you’re looking at the benefits of long-term investments, especially in the U.S. as the government rolls over regulations that will effectively put financials on top of the best industries to invest in for 2018 and beyond.

Private equity: A brief history of the trillion-dollar global industry

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The beginnings of private equity industry can be traced back the post-World War II era as a response to the economic gloom caused by the war’s aftermath. The late 1940s, in contrast to the state of the finance industry during those times, was the golden age of the formation of the world’s very first venture capital firms: the American Research and Development Corporation (ARDC) and the J.H. Whitney & Company.

In the 1980s, private equity investors in the U.S. recorded a boom in large buyouts on Wall Street, participated by two famous PE investors: Henry Kravis and Jerome Kohlberg, Jr. of the Kohlberg Kravis Roberts (KKR), a modern global investment firm.

Over just a period of ten years (from the end of the 1970s through 1990s), records show thousands of leveraged buyouts, amounting to an overall transaction value of $250 billion.  The same decade also produced major private equity firms like Hellman & Friedman, The Carlyle Group, Bain Capital, and the Blackstone Group.

The deterioration in economic and financial performance in the U.S., for instance, totally changed the recent history of the private equity industry and the investment industry as a whole. Before 2008, private equity firms used to have the freedom and capacity to complete huge buyouts, thanks to low-interest rates, laid-back lending procedures, and even easy access to debt-financing.

Come 2008, fewer buyouts were observed, recording only small volumes of completed deals. The figures drastically dropped, from the early years of the 21st-century value of trillions to just over $400 billion from 2008-2010. However, as soon as the economy recovered from this recession, private equity buyouts slowly found its way back to the limelight, closing billion-dollar buyout deals once again.

Today, the global private equity industry holds over $2 trillion in assets and a committed capital value of $1 trillion.