Of the companies listed on the Fortune 500 in 1955, only 61 (or 12%) remained in 2014. That means 88% of the original companies either went bankrupt, merged, or fell from grace due to decreased total revenues. Less than one percent of companies actually make the Fortune 500, which means those that do are the best at what they do. In fact, another Forbes article highlighted that 50 years ago, the life expectancy of a firm in the Fortune 500 was around 75 years. Today, it’s less than 15 years and declining.Given this one has to ask whether the concerns we often see about increasing market concentration are valid. I mean if firms are becoming bigger and more powerful why is it that they are surviving for an ever decreasing time at the top. Isn't having market power all about making sure you stay at the top year after year, decade after decade?
Monday, 2 May 2016
is it increasing? Consider this from Forbes