Is it possible for companies to keep growing indefinitely?

Question

It seems the price of a stock is pegged to the growth of a company. But is it possible for sustained growth year after year? An example being Starbucks. Won't that company eventually saturate the market and thus no longer be able to grow?

Answer 1

As a company matures its rate of growth slows. As stores become more saturated the revenues growth per store slows. Companies have to change, evolve, and remake themselves into the latest best thing.

Back about 30 years ago there was a book out on businesses called, "In Search of Excellence" and it sought out the very best companies and examined what made them the best. The strange thing is that none of those companies from back then would make anybody's list of excellence today.... Things change, people change and the list of best companies change.

Part of the fun of pegging the best companies is that you're never out of work.

Answer 2

Probably not. Companies have a life cycle. At first demand is strong and profits are large. Then more producers enter the business which lowers profits, because customers are divided among more producers. The market gets saturated. Products and services become obsolete due to technology. So in the early years of a company growth rates are high and then they level off. A company cant continue to grow faster than the economy forever anyway, or it would become the economy. Companies have to change and evolve into new markets and new products if they want to maintain growth. So you're correct. Starbucks cant continue to grow forever.

Answer 3

You are from Texas and you ask a question like that???? Texas....The shame of the USA...Texas...The State that gave us the most incompetent, most corrupt cesspool administration in the history of USA? Ask your Fuhrer...Herr Bush...The way we find Texas from California is to walk south until we smell s**t, then turn left until we step in it !!!

Answer 4

yes