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上期划线句答案
When you’re performing a task or something you have done many times before, the neural pathways involved become so common that they fire correctly without conscious effort, essentially turning on autopilot.
当你在执行某个任务，或者做一些你已经做过很多次的事情时，相关的神经通路会变得熟门熟路，能够在没有意识的情况下正确启动，从而进入自动驾驶状态。
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本期内容
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双语阅读
Para.1
How many companies stand the test of time? Remarkably few, to judge by the average span of quoted companies on the stock market. Just over 1 per cent of the 1,513 UK-listed companies in 1948 still existed 70 years later, according to an analysis by two Cambridge professors. Roughly half of US public companies traded for 10 years or fewer over the past century, says Morgan Stanley. To be sure, a delisting does not necessarily mark the end of a company’s existence as a distinct entity. Private equity deals are a case in point. And a majority of delistings are due to takeovers, which can be lucrative for selling shareholders.
Para.2
But shortlived companies are mostly poor investments. The majority of companies that survived less than 20 years on the US stock market had negative compound returns, according to Hendrik Bessembinder, a finance professor at Arizona State University. Bankruptcies, late filing and other regulatory failings account for about 40 per cent of departures from the US market since 1976.
Para.3
Small companies are highly vulnerable to setbacks. But above a certain size, scale provides limited protection. Larger, older companies tend to tie up resources in existing operations rather than potential growth opportunities, notes Rita McGrath from Columbia Business School. Moreover, established companies’ succession plans often demonstrate a “see-saw” problem. Visionary leaders are replaced with loyal lieutenants. Though skilled at dealing with operational challenges, they tend to stick to their predecessors’ strategy. Apple’s Tim Cook, for example, has yet to cement his reputation as an innovator.
Para.4
Winnowing out senescent companies is not a bad thing. Zombie businesses sap productivity. Creative destruction has nearly halved the average time spent in the S&P 500 index over the past 60 years, according to strategy and innovation consultancy Innosight. Investors have disproportionately profited from US tech companies founded in the past 30 years. Yet corporate failures — and the resulting damage to wealth, livelihoods and communities — could sometimes have been avoided. The misguided pursuit of shareholder value is often to blame, according to economist John Kay.
Para.5
Investors should take heed of corporate demographics. Morgan Stanley’s Michael Mauboussin points out that discounted cash flow calculations attribute a lot of value to the earnings generated after the end of the forecast period.It might be time for a rethink that takes account of a range of possible outcomes. The tacit assumption that a company will have a long, profitable life is not justified in the majority cases.
本文节选自：Financial Times（金融时报）
发布时间：2024.12.24
作者：Companies
原文标题：Why the mysteries of corporate longevity matter to investors
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写作句总结
原句：Moreover, established companies’ succession plans often demonstrate a “see-saw” problem.
结构：Moreover, X's Y often demonstrate a Z problem.
例句：Moreover, a student's procrastination habits often demonstrate a lack-of-time-management problem.
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阅读理解题
Based on the provided text, what is the most accurate interpretation of the author's statement "The tacit assumption that a company will have a long, profitable life is not justified in the majority of cases"?
A. Investors should not rely on the expectation of a company's long-term success when making financial decisions.
B. Most companies are expected to fail within a short period due to poor management.
C. Companies should focus on short-term gains rather than long-term sustainability.
D. The majority of companies will eventually be taken over by larger, more profitable businesses.
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全文概括
Company longevity is surprisingly rare, with studies showing a high failure rate, especially among smaller firms. While mergers and acquisitions are common, most short-lived companies yield poor returns for investors. Established companies often struggle with innovation, hindered by resource allocation to existing operations and leadership transitions. Though creative destruction benefits the market overall, avoidable corporate failures cause significant economic damage. A reevaluation of investment strategies is suggested, acknowledging that long-term profitability isn't guaranteed for most businesses.
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翻译 | 大橙子
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