General Electric Company (GE): The Dawn of the Dow (.DJI)’s Most Durable Company

Multiple Caterpillar tractors released during the Great Depression claimed the title of “largest and most powerful,” each new iteration displacing its predecessor. Caterpillar was increasingly abandoning the farm market for heavy industry, which was more readily supported by government funds or by scarce bank financing. By the end of World War II, a modern Caterpillar had taken shape, with an increasingly diverse product line for construction, earth-moving, and other extractive industries.

From the year of its merger to the 80-year celebration of that merger, Caterpillar grew from a company with $21 million in annual sales to one that raked in $36 billion a year. That number has been far exceeded in more recent years, a testament to the company’s strength and resilience through all manner of economic climates. Capitalized at $6.5 million after its merger, Caterpillar’s value grew enormously over the years, reaching $30 billion on its 80th anniversary — an annualized growth rate of 11.1%.

The article The Dawn of the Dow’s Most Durable Company originally appeared on Fool.com.

Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter @TMFBiggles for more insight into markets, history, and technology.The Motley Fool recommends Chevron. The Motley Fool owns shares of General Electric Company and JPMorgan Chase (NYSE:JPM).

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