Geoff Colvin: 2014 Fortune 500 list reveals profound change in business climate

It’s here! Fortune released its 500 issue yesterday. It’s the most eagerly-awaited issue all year.

I asked Senior Editor-at-Large GEOFF COLVIN if anything set this year’s list apart. Here’s a short video with his comments. The big story: for the first time, the 500’s profits exceeded $1 trillion - far more than ever before. Geoff made two important observations:

• That profit number should be a warning for investors. Today’s stock prices overall make sense only if you think corporate profits will rise smartly from here. But by every measure they’re already the highest in history, by far.

• While the 500’s profits rose 32% since last year, employment rose only 0.7%. Could the trend described in my article be part of the explanation?
Geoff’s article, “In the Future, Will There Be Any Work Left for People to Do?” shows how technology is displacing workers at a pace faster than ever; doing the job better than people. To compete, individuals and companies need to be dominant in the most valuable skills of the near future; the skills computers can’t take away. The article is a short version of Chapter One of his next book (out in spring, 2015) on this subject.

Geoff has a second piece in the Fortune 500 issue -- his On Leadership Interview with Christine Lagarde, chief of the International Monetary Fund.

Geoff Colvin remains the most astute and best-speaking journalist covering business and the economy. His next book in 2015 will only increase interest in his work.