A cornerstone of Jeremy Siegel’s research in “Stocks for the Long Run” is that high-tech investments have a strong tendency to fizzle out over time. If you look at the best performing businesses over the past sixty years, they tend to sell products that are similar to what was being sold in the 1960s.
Colgate-Palmolive has been one of the best performers since 1956, and it is still selling toothpaste and soap. 3M is on the list, and its famous Post-It notes are still around. Pepsi is still on the list, and America continues to eat potato chips. A bunch of oil companies–Exxon, Shell, and Chevron–are on the list, and they’re still selling and transporting oil, chemicals and natural gas.