Is there a Koch Industries stock? With annual revenues of $110B in 2019, Koch Industries operates an empire that spans the globe. Investors, however, have never been given the opportunity to reap the profits from the family’s impressive business acumen.
Here’s what you need to know about Koch Industries stock. Why does the company continues to remain private? And what publicly-traded company might be a good alternative for investors? We tell you all this and more.
The Koch Industry Empire: Koch Industries Stock
Thanks to its numerous holdings and long history, Koch employs more than 120,000 people worldwide. And in more than 50 countries.
According to Bloomberg, Koch Industries is the second-largest privately held corporation in America! The first is the agriculture-focused conglomerate, Cargill.
Koch Industries focuses mainly on the manufacturing and petroleum industries. But they don’t stop there. In fact, they have divisions dedicated to petrochemical processing, mineral extraction, ranching and logging.
And the list keeps going; they have substantial stakes in business development and financial trading. The company’s diversity doesn’t end there.
They are also involved in a variety of industries such as refining, chemicals and bio fuels. As well as forest and consumer products. Among them fertilizers, polymers and fibers.
The process and pollution control equipment and technologies. They have electronics and information systems. As well as commodity trading such as minerals, energy, and glass. They even dabble in ranching and investments. I know, that is a mouthful!
Although Koch Industries focuses heavily on raw materials, it is also the name behind several familiar brands. Take, for example, the common household brands such as Dixie paper cups, Brawny paper towels and Stainmaster.
When Was Koch Industries Founded?
1940 was the year Fred C. Koch co-founded the company and developed an innovative crude oil refining process.
His sons, Charles and David, are principal owners of the company. This comes after they bought out their brothers, Frederick and William “Bill” Koch, for $1.1 billion in 1983.
Brothers Charles and David Koch, each control 42 percent of the corporation. According to Forbes, the other 15 percent is owned by Elaine Marshall, whose father-in-law was an investor.
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How to Buy Shares of Koch Industries Stock
The big question looming in investor’s minds is, “how do I buy shares in Koch Industries Stock?” Despite that Koch Industries is one of the largest companies in the United States, they’ve remained in private hands since its inception.
Likewise, they have a history of keeping its internal workings guarded. Making it unlikely that it will ever pursue an IPO.
And much to investors chagrin, shares aren’t publicly traded on any stock exchange. Nor are they readily available for purchase. Sigh.
And for those of you hoping to get a piece of the pie, don’t hold your breath. According to Forbes, Charles has stated that the company will publicly offer shares “literally over my dead body.”
I think you have your answer. While there may be no Koch Industries stock, you can get trading ideas from our stock alerts service.
The Benefits Of Being A Privately Held Company
During its acquisition of paper and pulp producer Georgia-Pacific, Koch Industries emphasized what it believes to be the benefits of being privately held.
For starters, they feel privately held companies can better focus their efforts on the long term. The underlying premise is that public companies can subject to the perils of short-term traders. These traders intend to flip their investment for a quick gain.
And the unfortunate consequence of this profitable venture is company volatility. Check out our trade room for Koch Industries stock substitutes.
Is Koch Industries Publicly Traded?
- Koch industries became one of the largest publicly traded companies by a private firm after the 2005 acquisition of Georgia-Pacific. Georgia-Pacific has been one of the leading paper product producers in the world. Now Koch Industries stock controls that company.
One Alternative To Koch Industries Stock
If you’re looking at the materials space, then you’ve probably heard of DowDuPont Inc. (NYSE: $DD). In fact, this publicly traded company “was” one of Kochs’ main competitors.
However, DuPont has a 50% year-to-date (YTD) decline. In fact they’re $18 billion in debt. And have fall commodity prices.
As a result, you might want to steer clear of the stock for now. Until the trend becomes your friend again.
$DD Stats courtesy of Stock Rover (April 2020)
But don’t fret, there’s another player in the game you might want to check out. And that’s Albemarle Corporation (NYSE: $ALB). They focus in three different areas, Bromine, catalysts and Lithium.
As a result, Albemarle is looking to solidify its foothold in the electrical vehicle market. If you didn’t already know, Lithium is the primary material used in batteries.
It’s these batteries that power our electric cars. It goes without saying, Albermarle is playing a long game here. In fact, it looks as if they’re betting their future on Lithium.
They’re anticipating the demand for electric cars will increase in the future. I don’t think they’re wrong. By no means am I here to give you investing advice.
I suggest, as always, do your due diligence on any stock you decided to invest in for the long term.
Albemarle is the world’s largest lithium producer. Demand is predicated upon expected demand for electric vehicle batteries. $TSLA and $NIO are car companies that have some growth that may have an impact on demand! $ALB produces lithium from its salt brine deposits in Chile and the U.S. and its hard rock joint venture mines in Australia. $ALB is also a global leader in the production of bromine, used in flame retardants, and oil refining catalysts.
This is not an entirely new story. Many companies don’t want to go public. And I don’t blame them. The inability to buy Koch Industries stock shouldn’t stop you from investing elsewhere.
And for those of you looking to get a piece of the materials pie, your options are endless. In fact, a lot of these companies are pricey. Therefore, we can show you how to purchase them with options. It’s not as hard as you think with our free online trading courses.