The original investors in the world’s oldest company, the construction firm Kongō Gumi, would be well pleased that the venture they originally backed in 578 AD is still going strong in modern Japan – one can only imagine the effect of compounded dividends over that timeframe.
Assessing the merits of the market’s oldest companies can enable us to see whether a particular set of qualities – be it steady management, adaptability or just simple luck – are the key ingredients of long-term success, and whether these qualities are also evident in companies that are less advanced in their corporate journeys.
Compiling a comprehensive list of companies with exceptional longevity, both privately owned and listed on the public markets, is relatively easy, but quantifying what makes them unique, or worth investing in, is a much more difficult exercise. What is clear is that how companies change and evolve over time can affect their investment potential, their function and even the basis of their operations. For instance, a modern investor in a company such as Pearson (PSON), which these days is a pure-play academic publisher, would hardly wish that it return to its roots as a builder’s merchant and construction material wholesaler in 19th century London.