Collapse of top companies - Sec. Analysis Dilemmas

“Forbes100” from 1917 to 1987:
39 members of the Class of ’17 were alive in ’87;
18 in ’87 F100;
18 F100 “survivors” underperformed the market by 20%;

just 2 (2%), GE & Kodak, outperformed the market 1917 to 1987.

S&P 500 from 1957 to 1997:
74 members of the Class of ’57 were alive in ’97;
12 (2.4%) of 500 outperformed the market from 1957 to 1997.


Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market