The Lindy Effect: A Theory of the Future

The Lindy effect is a theory that says companies are not finned life objects. The farther back you can look, the farther forward you'll be able to see an investment company's future. John MacIntosh: In evaluating opportunities, I go back at least 10 years and in many instances if it's available 20 years. He tries to quantify this consistency through a statistical measure called coefficient of variation.