News for hackers. Stuff that matters.

A comment on After rising for 100 years, electricity demand is flat. Parent comment

Re:After rising for 100 years, electricity demand is flat by skybrian on Tuesday February 27, 2018 @11:56AM (#16475318)
Theoretically, in the steady state where revenue and profits are fixed, the stock price wouldn't go up but you could reinvest the dividends. Whether this is a good investment depends on the profit margin.

In the real world, the average lifespan of a company in the S&P 500 is under 20 years. [1]

[1] https://www.cnbc.com/2017/08/24/technology-killing-off-corpo...

[ Parent | on HN ]
Re:After rising for 100 years, electricity demand is flat by jonknee on Tuesday February 27, 2018 @12:49PM (#16475919)
You're reading that stat incorrectly:

> "The average age of a company listed on the S&P 500 has fallen from almost 60 years old in the 1950s to less than 20 years currently,"

The reason for that is there have both been a lot of mergers and a lot of new companies that have gotten huge in a small amount of time, especially in tech (Google, Amazon, Facebook, Netflix, NVIDIA, etc).

[ Parent | on HN ]