I recently chanced upon this interesting speaker talking about how companies can last for 100 years.
In fact, the statistics ring from the video ring so true.
- Companies are “dying” younger over time (disruption, internal chaos, over-leveraging, and many other reasons).
In fact, the speaker referenced to nature as the perfect way to find a perfect company setup. And I find it a very apt comparison. Mother nature has been one of the longest lasting “enterprises” in the world, facing extreme odds of bad weather, harsh environment, and so on.
How then does mother nature survive the continuous onslaught? The 6 key points are stated below:
In fact, these 6 points are obvious in the longevity of well-run MNCs such as Toyota.
On a value investing standpoint, it is the exact same traits that you are looking to invest in great companies that can last forever, and provide multiple bagger returns.
Without further ado: