Sunder’s List: No Such Thing As “Forever”

Roundup: S&P +0.47%, Dow +0.75%, Nasdaq +0.28%, Gold $1,210.30, London +0.23%, Germany +0.94%, France +0.07%. At pixel: Nikkei -0.64%, Hang Seng -0.09%

Thoughts for investors with the “buy and hold forever” affliction:

  1. Majority of large companies do not successfully maintain their current revenue streams, let alone grow them over time. The lifespan of companies in the S&P 500 index has been steadily shrinking for decades. In 1960, a typical S&P company had been around for 60+ years. By 2010, the typical S&P company was 16 or 17 years old. (HBR)
  2. Use Facebook as a case-study. “What we’ve learned from working with 16-18 year olds in the U.K. is that Facebook is not just on the slide, it is basically dead and buried. Mostly they feel embarrassed even to be associated with it.” Facebook has become the link with older family, or even older siblings who have gone to university. (TheConversation)

Robots and humans are inching toward integration. Robot-human teams would combine machines’ strength and employees’ ability to see, feel, touch and think — qualities impossible or too costly to replicate mechanically. It’s a new frontier in automation after mechanization helped boost U.S. factory output by 53% in the past two decades even as manufacturing employment tumbled 28%. (Bloomberg)

PE firms may have to pay a combined $1B for defrauding shareholders out of billions of dollars by colluding to keep prices artificially low when buying their companies. The firms agreed from 2004 through 2008 not to jump each other’s signed deals.(NYPost)

Turkish markets are in turmoil over a corruption investigation. Prosecutors, who unveiled a wide-ranging corruption investigation Dec. 17, have said they plan to charge at least 24 jailed suspects with bribery, money laundering and gold smuggling. (WSJ)

Good luck and have a nice weekend!

 

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