Part 3/6:
Damodaran notes that 20th-century companies like Ford and GM had much longer lifespans, taking 50-60 years to scale up. In contrast, 21st-century companies like Yahoo and BlackBerry can rise and fall within 23 years.
This rapid pace of change poses challenges for management, as the skills required to run a young, high-growth company are often very different from those needed to manage a mature or declining business.
Additionally, the rise of dual-class share structures has given founders and CEOs more power, making it difficult for shareholders to remove underperforming management teams.