Something to Think About: Many Great Companies Were Formed During Recessions
From Growthink newsletter:
What does the first half of 2008 have to show for us?
- Record-breaking oil prices
- Unprecedented government bail outs
- Poor stock market performance
All signs point towards an extended slowdown in the economy. During these conditions, investors will find it extremely challenging to achieve alpha returns in the public markets. But that doesn’t mean that you should be hiding your money under your mattress.
History has shown that recessions are a great time to launch new companies. In fact, 16 of the 30 companies whose stocks make up the Dow started during recessions. General Electric traces its roots to the panic of 1873. William Hewlett and David Packard founded HP during the Great Depression.
In 1982, the U.S. was in the midst of a recession and unemployment was at its highest since World War II. But just when the general investing public was panicking, private investors were planting the seeds of great investment fortune.
In that year, 5 new businesses were launched that are now worth more than $50 billion. Do you recognize their names?
Click here to learn which companies we’re talking about…
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