Corporate longevity

Posted By Darren Winters on Feb 27, 2020


Corporate longevity

Corporate longevity is one factor in the equation that improves your odds of betting on a winner/survivor and most importantly doing it at a bargain when the bubble of bubbles bursts.

Corporate survivability is not solely based on corporate longevity, technology, and changing tastes, government legislation and technology has displaced old players

The digitalization of everything made Kodak, a household name obsolete. 

Who would have thought Kodak founded in 1888, which commanded 90% lion-share of film supplies in the 70s would have filed for Chapter 11 bankruptcy in January 2012?

So the DNA of corporate survivability, which leads to corporate longevity, might be for the corporation to have a young and sexy streak, open to new ideas, innovative, rebellious to the point of even disrupting its products with newer better ones. 

The trend of declining corporate longevity is likely to continue going forward, bearing in mind aged and sexy is a difficult act to pull off

The Fourth Industrial Revolution, the current era of disruptive technologies is likely to accelerate the trend of declining corporate longevity. 

Corporate longevity has been declining significantly since the 60s

In the 1960s, a typical S&P 500 company was projected to last for more than 60 years. However, with the advent of  fourth revolution technologies, which creates the Amazon effect on businesses, it has been cut to 18 years. 

Corporate longevity varies according to the geographical region and sector of the business

Corporate longevity

Three of the five oldest companies in South America are mints, specifically in Brazil, Colombia, and Peru. The oldest of these mints, Casa Nacional de Moneda in Peru, was built on order from Spain and established in 1565. After the great influx of newly-mined silver from America to Europe, the Spanish crown outlined to King Felipe II that building a mint would give the colony economic benefits and more control.

Corporate longevity in Europe, the old continent, also has a total of 15 oldest companies related to the food and beverage industry, from distilleries, vintners (winemaking), and breweries alongside restaurants and pubs.

Austria’s St. Peter Stifts Kulinarium (founded in 803) is Europe’s oldest restaurant, located inside the St. Peter’s Abbey monastery.

Germany’s oldest company is the Staffelter Hof Winery (founded in 862).

Asia’s corporate longevity can be found in banking and finance

Six of the oldest companies active in this sector. The Asian continent is also home to two of the world’s oldest companies, located in Japan and China. 

Not even a nuclear apocalypse inflicted on Japan by the US took out Japanese temple and shrine construction company Kongō Gumi Co., Ltd

This company has survived disasters both natural and man-made. In neighboring China, Ma Yu Ching’s Bucket Chicken House has endured dynasties of change as well. 

Africa’s companies with the longest lifespan, corporate longevity can be found in the transport sector, airline ports, and shipping

Cape Verde’s Correios de Cabo Verde (postal service, founded in 1849) and the DRC’s Société nationale des Chemins de fer du Congo (national railway company, founded in 1889). Standard Chartered was founded in  1892. 

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