Sixty-one of the companies listed on the Forbes 100 list in 1917 no longer exist 70 years later. Only 18 companies remained in the top 100, and none of them were particularly strong performers. Looking at the S&P 500 over the last 50 years yields similar results: few companies survive over time, and those that do aren’t great performers.
Discontinuity is not a new phenomenon, but the rate of discontinuity has increased, owing primarily to technological advancements. Businesses must adapt to the new paradigm.