Author Topic: Have any companies embarked on growth phase after decades of low growth?  (Read 2209 times)

Mark Jr.

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Just wondering something lately, are there any notable examples of companies or businesses that embarked on a growth phase after already existing for 10 or 20 years without high growth?

The main one that comes to mind is I once read that after Sam Walton opened his first store, it took him 20 years to open his second location.

That is the other part I'm wondering, in cases where small, microcap or even nanocaps (or privately held) companies started growing after a long precursor of steady state or low growth, how many did so under the same CEO? Or in those cases, is a CEO change (or management change) always the catalyst?

Working on a particular thesis and looking for historical parallels.



rb

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Re: Have any companies embarked on growth phase after decades of low growth?
« Reply #1 on: October 02, 2020, 08:43:22 AM »
There are many cases. Just a few off the top of my head:

Very famous case Kimberly Clark.

Maybe the most obvious one on this board: Berkshire Hathaway

Coke in the 80s and 90s after stalling in the 70s.

Haven't looked at it but pretty sure 3M did too. What they're doing right now is much more growthy than mining.

Most of the cases I know happen because of a transformation of the company (3M and Kimberly Clark) or the arrival of a super CEO that reinvigorates the company.

Spekulatius

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Re: Have any companies embarked on growth phase after decades of low growth?
« Reply #2 on: October 02, 2020, 10:56:06 AM »
Mannesmann in Germany is one example. They were in steel pipe tubes and machinery business and then were able to get the license for the second mobile phone network in Germany, which totally transformed the company.
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lnofeisone

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Re: Have any companies embarked on growth phase after decades of low growth?
« Reply #3 on: October 04, 2020, 07:53:10 PM »

Most of the cases I know happen because of a transformation of the company (3M and Kimberly Clark) or the arrival of a super CEO that reinvigorates the company.

Corning fits this mold too.

Hielko

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Re: Have any companies embarked on growth phase after decades of low growth?
« Reply #4 on: October 05, 2020, 07:09:11 AM »
Or what about Apple. Think there are really a lot of examples

rkbabang

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Re: Have any companies embarked on growth phase after decades of low growth?
« Reply #5 on: October 05, 2020, 07:45:43 AM »
Microsoft was flat from 2001 to about 2013

Spekulatius

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Re: Have any companies embarked on growth phase after decades of low growth?
« Reply #6 on: October 05, 2020, 08:49:53 AM »
Microsoft was flat from 2001 to about 2013

The stock was flat, the business wasn’t. MSFT’s revenue grew from $25.3B in 2001 to $77.8B in 2013;  roughly 10% annually.
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cherzeca

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Re: Have any companies embarked on growth phase after decades of low growth?
« Reply #7 on: October 05, 2020, 09:20:35 AM »
"Working on a particular thesis and looking for historical parallels."

these examples are all hindsight, of course.  curious what your thesis is...let us know if (after) you have acted on it

BG2008

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Re: Have any companies embarked on growth phase after decades of low growth?
« Reply #8 on: October 26, 2020, 06:10:58 PM »
Howard Hughes may set up for it this decade.  They've been fundamentally growing for the past decade. But the last decade saw shares go from $40 to $160 and back to $65.  I think this decade may see it go to $200-300.  Just a hunch. 

clutch

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Re: Have any companies embarked on growth phase after decades of low growth?
« Reply #9 on: October 26, 2020, 07:49:13 PM »
NVDA. Hit the jackpot with AI + crypto + data center booms. Also, their investment into CUDA paid off.