Growth Isn’t the Only Way for Companies to Create Value
Companies can create lasting value without growth, as stable firms deliver market-level returns with lower volatility.
Summary
Pidun, Szekasy, Havelková and Job note that receding globalization, aging populations and sustainability concerns are creating headwinds to growth, and that growth at all costs can destroy value. Studying more than 10,000 companies over 20 years, they identified 172 stable firms with near-zero revenue growth that delivered shareholder returns similar to the market with 12% lower volatility, along with greater resilience. The strategies of these
Editor's opinion
A genuinely counterintuitive, well-evidenced finding across 10,000+ companies over 20 years: stable zero-growth firms can match market returns with lower volatility.
Key concepts
Stable outperformers · Value without growth · Low volatility returns