HBR's 10 Must Reads 2019

BOWER AND PAINE

capitalization grew faster as well. The returns to society and the
overall economy were equally impressive. By our measures, com-
panies that were managed for the long term added nearly 12,000

0

2001 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

+47%

Long term

Financial crisis

All others

Average company revenue

(in US$ billions per year, indexed to 2001)

2.5

5.0

7.5

$10.0

0

2001 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

Long term +36%

All others

0.5

1.0

1.5

$2.0

0

2001 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

+81%

Long term

0.25 All others

0.50

0.75

$1.00

–5

2001 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

Long term +58%

0 All others

5

10

15

$20

Average company earnings

(in US$ billions per year, indexed to 2001)

Average company economic profit

(in US$ billions per year)

Average market capitalization

(in US$ billions per year, indexed to 2001)

Firms focused on the long term exhibit stronger
fundamentals and performance

Source: McKinsey Global Institute.