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Wednesday, April 18, 2012

Watched an interesting video tonight arguing that established large companies are increasingly less secure in their leadership positions. The point made is that we are seeing less and less time between the disruptive waves where new companies overtake their predecessors.

This line of thinking really challenges the widely held notion that holding fortune 500 share portfolios are a means of safe long term asset growth. Although Warren Buffet would most likely disagree with this idea.

Study of the fortune 1000 - Which companies decline from leadership positions?
  • 1973-1983: 35% of Fortune 1000 fell off the list
  • 1983-1993: 43% of Fortune 1000 fell off the list
  • 1993-2003: 60% of Fortune 1000 fell off the list
  • 2003-2011: 70% of Fortune 1000 fell off the list

In my opinion this explains why public markets are not seeing much growth and private companies and startups are seeing all the value creation!

Posted by Nick HaC @ 10:29 PM


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