whatever company you buy it probably won’t be around for long
using a statistical technique called survival analysis, Daepp and her mentors discovered something no one had predicted: a firm’s mortality rate – its risk of dying in, say, the next year – had nothing to do with how long it had already been in business or what kinds of products it produced.
“It doesn’t matter if you’re selling bananas, airplanes, or whatever,” Hamilton says – the mortality rate is the same. Though the number, of course, varies from firm to firm, the team estimated that the typical company lasts about ten years before it’s bought out, merges, or gets liquidated.
considering the exponential increase in technology with ever more frequent disruptive innovations, the lifetime of most companies will probably get even shorter in the future.
Which alters my ideas on long term (decades long) investing. Mostly I limit that to index based ETF. Or real property.