The average lifespan of a company is 10 years.[0] The average lifespan of companies on the S&P is maybe a little more than twice that. Each year you have a 1/10

The average lifespan of a company is 10 years.[0] The average lifespan of companies on the S&P is maybe a little more than twice that. Each year you have a 1/100 chance of seeing a hundred year flood. With a short lifespan the odds are decent that your company simply won’t see one. The question is then: how good of an idea is it to spend to be robust to them? Of course it is viciously circular: planning to not be robust to white swans is probably why the lifespans are so short and shrinking. Tim Cook doesn’t have voting control of Apple but it is sitting on a massive shock absorber made of cash earning insanely low rates of return. The idea that you need control of the board to be robust doesn’t seem to be necessary. It is probably helpful but it isn’t necessary. [0] https://www.sciencedaily.com/releases/2015/04/150401132856.htm https://www.sciencedaily.com/releases/2015/04/150401132856.h...