White papers

• Lindy’s Law—a Darwinian process in action: The longer a company survives, the stronger its competitive moats become, enabling it to thrive well into the future.
• Built to last: Strong cash credentials, smart capital allocation, diversification, global reach, crisis resilience and an established corporate culture can help a company to go the distance.
• Endurance over category: A company’s journey to becoming a “compounder”—known at Comgest as a “marathon runner"—is driven by its distinct strengths, not its sector or region.

Sustaining a business over the long term is no easy task. In the United States, more than half of all new businesses fail within five years, and only a quarter survive beyond 15 years, according to the U.S. Small Business Administration. Few companies manage to endure for centuries. Take L’Oréal, for example, the French beauty giant has been in operation for over 110 years. In a previous white paper, we explored the concept of Lindy’s Law, which theorises that the longer a company survives, the more likely it is to continue to thrive. We observed that, as companies endure, their competitive moats typically strengthen, enabling them to sustain growth and navigate future challenges. We refer to these companies as "marathon runners," as they go the distance, forming the bedrock of the returns we generate for our clients.

Read more now