along for the ride

As Alphabet Inc. closes in on a $4 trillion market capitalization, shares of its suppliers are coming along for the ride.

At that time a winner-take-all environment meant investors were acting rationally when buying a bunch of companies with relatively fixed costs, knowing one would eventually see sales explode and become dominant in their industry—bringing their stock along for the ride.

The world’s most famous value investor, Warren Buffett, recently went along for the ride.

“But first we must get far enough from shore that they would not consider turning back. Fishermen are honest, hardworking folk. I expect they will treat me fairly, once they learn I am ‘along for the ride,’ so to speak.”

To get the remaining $1.5 trillion, Big Tech companies will need to not only utilize traditional debt instruments like corporate bonds but also carry out feats of financial engineering that will fundamentally redefine their relationship with Wall Street — and pull the entire market along for the ride.