An old investment adage is “the trend is your friend.” Industry and geographic trends contribute to business results, and some companies adapt better than others. With short-term gyrations becoming more significant, it is easy to lose sight of the long-term trends (Source: McKinsey).
Of the 1955 Fortune 500, only 12% are still on the list today.
· Chrysler and GM are part of that group, yet were near bankruptcy a few years ago.
· If you look at GM and IBM today, their product/service portfolio is very different than 60 years ago.
Today, established trends include: aging populations, rapid product or format innovation, deregulation, and consolidation. Thus, industries with favorable wind at their back include: financial services, health care, and high tech.
Does your company have a long-term friend in today’s trends?
