Guest Post by Nick Giambruno
Founded in Switzerland in 1866, Nestle (NSRGY) survived both World Wars, the Great Depression, numerous currency crises, and major upheavals in the global political and economic order.
Nestle’s shares have traded on the Swiss stock exchange since 1905.
A family that purchased Nestle shares in 1905 could have passed them down through generations and retained ownership to this day.
Few publicly traded European companies can claim that kind of shareholder continuity.
Nestle offers a rare and fascinating example of a listed European company that has endured three world orders and the chaotic, violent periods between them—WWI and WWII.
Today, we are in another period of extreme volatility as the US-led world order breaks down at an accelerating pace. I think what’s coming will blindside most people and their portfolios. That’s why I believe Nestle is an instructive example.
First, it’s important to recognize that “world orders” are nothing new.
Throughout history, world orders have provided the frameworks through which major global powers defined the structure of international political relations.
Understanding world orders requires zooming out—taking the geopolitical view from 40,000 feet.
On a smaller scale, it’s similar to how the most powerful criminal organizations in a city—such as mafias and street gangs—strike agreements to divide their activities and territories among themselves.
But these arrangements cannot last forever. Shifting power dynamics lead to disputes, violent struggles, and new agreements that reflect the changing balance of power.
The same dynamic applies to the most powerful countries, world orders, and world wars.
You can think of world orders as epochs—distinct historical periods marked by evolving global power structures. Here are the most recent ones.
Nestle has endured three world orders.
Nestle traces its origins to 1866, when the Congress of Vienna framework governed international political relations. The company survived the turmoil of World War I by acquiring factories in the US and Australia.
Nestle continued operating under the Treaty of Versailles world order, which guided international political relations until its collapse amid World War II, the deadliest conflict in human history.
World War II posed a major challenge.
Fearing that Switzerland could fall to Axis forces, Nestle established a second headquarters in the United States. The company expanded in Latin America and supplied customers outside Europe through its factories in the US and Australia.
When war disrupted Europe, the company could shift supply routes and management functions instead of depending on the survival of one country.
Unlike many listed European companies, Nestle survived World War II with shareholder continuity. The company has thrived in the post–WWII US-led world order.
Nestle’s Swiss base played a major role. Switzerland maintained its independence during both World Wars and avoided the destruction, occupation, and monetary upheaval that devastated most of Europe.
Nestle combines a Swiss corporate domicile with global production, essential consumer products, established brands, and a demonstrated ability to relocate management and production during wartime.
I think Nestle’s remarkable history offers a crucial investment lesson as we face another breakdown in the world order.
Today, we are witnessing a historic transformation in the global order—an event so rare that most generations never experience one.
These transformations don’t happen every year—or even every decade. Many people go their entire lives without seeing one unfold.
Such periods are volatile and dangerous but also present extraordinary opportunities—moments where fortunes and generational wealth are created.
Changes in the world order are historical events with immense investment implications.
That’s why it’s essential to cut through the noise and propaganda, piece together the facts, and grasp the true geopolitical Big Picture.
Throughout history, countless millions have been financially wiped out—or worse—during past conflicts between the world’s great powers because they failed to see the correct Big Picture and act accordingly.
But what if you get the Big Picture right as this all unfolds?
You can avoid catastrophe and position yourself for potentially life-changing profits.
For those who understand what’s happening and make the right moves today, this could be a once-in-a-lifetime opportunity to build lasting wealth.
Protecting your wealth through a change in the world order starts with understanding the risks—and taking action before a crisis limits your options.
I believe America is on the cusp of its worst crisis in nearly a century. The upheaval ahead could catch millions of Americans off guard, putting their money and personal freedom at risk.
That’s why I’ve put together a free special report: The Most Dangerous Economic Crisis in 100 Years… the Top 3 Strategies You Need Right Now.
The time to prepare is running short. Click here to get your free report.
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Continue reading...
[ H/T The Burning Platform ]
Founded in Switzerland in 1866, Nestle (NSRGY) survived both World Wars, the Great Depression, numerous currency crises, and major upheavals in the global political and economic order.
Nestle’s shares have traded on the Swiss stock exchange since 1905.
A family that purchased Nestle shares in 1905 could have passed them down through generations and retained ownership to this day.
Few publicly traded European companies can claim that kind of shareholder continuity.
Nestle offers a rare and fascinating example of a listed European company that has endured three world orders and the chaotic, violent periods between them—WWI and WWII.
Today, we are in another period of extreme volatility as the US-led world order breaks down at an accelerating pace. I think what’s coming will blindside most people and their portfolios. That’s why I believe Nestle is an instructive example.
First, it’s important to recognize that “world orders” are nothing new.
Throughout history, world orders have provided the frameworks through which major global powers defined the structure of international political relations.
Understanding world orders requires zooming out—taking the geopolitical view from 40,000 feet.
On a smaller scale, it’s similar to how the most powerful criminal organizations in a city—such as mafias and street gangs—strike agreements to divide their activities and territories among themselves.
But these arrangements cannot last forever. Shifting power dynamics lead to disputes, violent struggles, and new agreements that reflect the changing balance of power.
The same dynamic applies to the most powerful countries, world orders, and world wars.
You can think of world orders as epochs—distinct historical periods marked by evolving global power structures. Here are the most recent ones.
- The Current US-Led World Order (1945 to Today): The victors of World War II established the foundations of the current world order, with the US emerging as its leading power. This system includes institutions such as the United Nations, the World Bank, and the International Monetary Fund—all headquartered in the US. This world order has largely been unipolar, with the US exerting significant influence over international policies and decision-making.
- Treaty of Versailles (1919 to 1939): The victors of World War I established this world order and created institutions such as the League of Nations. But the arrangement collapsed as Germany, Italy, and Japan sought to overturn the existing balance of power and impose their own world order, culminating in World War II.
- Congress of Vienna (1815 to 1914): The defeat of Napoleon I led to this world order, which helped cement Britain’s position as the dominant global power. The Congress of Vienna established a framework for European politics that endured, despite periodic conflicts, until World War I shattered the balance in 1914.
- Peace of Westphalia (1648 to 1803): This agreement ended the Thirty Years’ War and established a framework for European international relations that lasted more than 150 years. It reinforced the sovereignty of states and helped shape the balance of power among major European powers, including the Holy Roman Empire, Spain, France, Sweden, and the Dutch Republic. The Napoleonic Wars shattered that balance and forced European powers to establish a new arrangement.
Nestle has endured three world orders.Nestle traces its origins to 1866, when the Congress of Vienna framework governed international political relations. The company survived the turmoil of World War I by acquiring factories in the US and Australia.
Nestle continued operating under the Treaty of Versailles world order, which guided international political relations until its collapse amid World War II, the deadliest conflict in human history.
World War II posed a major challenge.
Fearing that Switzerland could fall to Axis forces, Nestle established a second headquarters in the United States. The company expanded in Latin America and supplied customers outside Europe through its factories in the US and Australia.
When war disrupted Europe, the company could shift supply routes and management functions instead of depending on the survival of one country.
Unlike many listed European companies, Nestle survived World War II with shareholder continuity. The company has thrived in the post–WWII US-led world order.
Nestle’s Swiss base played a major role. Switzerland maintained its independence during both World Wars and avoided the destruction, occupation, and monetary upheaval that devastated most of Europe.
Nestle combines a Swiss corporate domicile with global production, essential consumer products, established brands, and a demonstrated ability to relocate management and production during wartime.
I think Nestle’s remarkable history offers a crucial investment lesson as we face another breakdown in the world order.
Today, we are witnessing a historic transformation in the global order—an event so rare that most generations never experience one.
These transformations don’t happen every year—or even every decade. Many people go their entire lives without seeing one unfold.
Such periods are volatile and dangerous but also present extraordinary opportunities—moments where fortunes and generational wealth are created.
Changes in the world order are historical events with immense investment implications.
That’s why it’s essential to cut through the noise and propaganda, piece together the facts, and grasp the true geopolitical Big Picture.
Throughout history, countless millions have been financially wiped out—or worse—during past conflicts between the world’s great powers because they failed to see the correct Big Picture and act accordingly.
But what if you get the Big Picture right as this all unfolds?
You can avoid catastrophe and position yourself for potentially life-changing profits.
For those who understand what’s happening and make the right moves today, this could be a once-in-a-lifetime opportunity to build lasting wealth.
Protecting your wealth through a change in the world order starts with understanding the risks—and taking action before a crisis limits your options.
I believe America is on the cusp of its worst crisis in nearly a century. The upheaval ahead could catch millions of Americans off guard, putting their money and personal freedom at risk.
That’s why I’ve put together a free special report: The Most Dangerous Economic Crisis in 100 Years… the Top 3 Strategies You Need Right Now.
The time to prepare is running short. Click here to get your free report.
Tweet
Continue reading...
[ H/T The Burning Platform ]
