Global companies create more shareholder value

An insightful chart from Sparkline Capital was recently shared on LinkedIn by Christian Jasperneite, CIO of M.M.Warburg. It illustrates a clear trend: over the past two decades, international companies with both global production and exports have significantly outperformed purely domestic firms in the equity markets. This pattern is now being challenged by growing protectionism and renewed tariff discussions.

Nevertheless, the core economic principles laid out by Adam Smith in The Wealth of Nations (1776) still hold true. Smith argued that nations generate prosperity through free trade and by focusing on their comparative advantages—a foundation that continues to support long-term global growth.