Wounded Heart - PIMCO

Joseph Schumpeter, the originator of the phrase “creative destruction,” authored a less well-known corollary at some point in the 1930s.

“Profit,” he wrote, “is temporary by nature: It will vanish in the subsequent process of competition and adaptation.”

And so it has, certainly at the micro level for which his remark was obviously intended.

Once proud, seemingly indestructible capitalistic giants have seen their profits fall short of “everlasting” and exhibited a far more ephemeral character.

Kodak, Sears, Barnes & Noble, AOL and countless others have been “competed” to near oblivion by advancing technology, more focused management, or evolving business models that had better ideas more “adaptable” to a new age.

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Original content +Bob DeMarco , All American Investor