How to Predict the Lifespan of a Company in One Simple Measure
In his book “Creative Destruction”, Richard N. Foster revealed that the rate that companies fall off of the S&P 500 – the 500 most valuable companies traded on the U.S. stock market – is accelerating. In 1958, the lifespan for a company on the list was roughly 61 years. Today, the average is just 18 years. At this rate, 75 per cent of the S&P 500 will be replaced by 2027.