Why Some Companies Stand the Test of Time
When it comes to investing in the stock market, many of us are looking for companies that will thrive for the long haul. We want to buy and hold onto stocks that will continue to grow and prosper, even as the years go by. However, as we’ve seen with companies like General Electric, Kodak, and JCPenney, this isn’t always the case. Every industry will eventually change, and not all companies are able to adapt to these changes.
Adapting to Change
One company that stands out from the rest is Alphabet, the parent company of Google and YouTube. What sets Alphabet apart is its ability to adapt to change and evolve over time. Since its launch in 1998, the company has been willing to enter new lines of business and explore new opportunities. For example, its acquisition of YouTube in 2006 was a bold move that has paid off in a big way. Similarly, its launch of App Engine in 2008 marked its entry into the cloud computing space, and its acquisition of the Android operating system in 2005 has given it a dominant position in the mobile market.
Building a Business That Lasts
So, what makes Alphabet’s approach so successful? For one, the company’s management team has a keen sense of what’s worth pursuing and what’s not. This is evident in its ability to cut bait when necessary, as seen in the shutdown of its Verily life sciences arm and its Everyday Robots initiative. This willingness to adapt and evolve has allowed Alphabet to achieve year-over-year revenue growth in every single quarter since 2013, with the exception of the second quarter of 2020, when the COVID-19 pandemic was first spreading.
A Corporate Ethos of Longevity
Alphabet’s corporate ethos is centered around maintaining longevity and adaptability. The company’s management team has a deep understanding of what it takes to build a business that will last, and this wisdom is passed down from one generation of workers to the next. This approach has allowed Alphabet to navigate challenging times with relative ease, investing in new opportunities and letting go of assets that are no longer worth sticking with.
Investing in a Company That Lasts
So, what can we learn from Alphabet’s approach? For one, it’s essential to be willing to adapt and evolve over time. This means being open to new opportunities and willing to let go of assets that are no longer serving us. It also means having a deep understanding of what it takes to build a business that will last, and being willing to pass this wisdom down to future generations. By following these principles, we can build a strong foundation for long-term success, whether we’re investing in the stock market or building our own businesses.
Putting It All Together
In conclusion, Alphabet’s success is a testament to the power of adaptability and a corporate ethos centered around longevity. By being willing to evolve and change over time, the company has been able to achieve remarkable success and build a business that will last. As investors, we can learn from this approach and apply it to our own investment strategies, seeking out companies that share these same values and principles. By doing so, we can build a strong foundation for long-term success and achieve our financial goals.
