Stats on Our Side

Very interesting read from Paul Ormerod on the history of the length of time of recessions:

Since the late 19th century, there have been 255 recessions in western economies. Of these, 164 have lasted just one year and only 32 have lasted for more than two years. In other words, two-thirds of recessions last a single year, and only one in eight lasts more than two years. If we strip out the peculiar circumstances at the end of the two world wars, 70 per cent of all recessions last just one year.

Let's hope the numbers stay on our side for this current recession.

Paul Ormerod is also the man behind one of my favorite business lines.

Mr. Ormerod is often asked the question, "How do I build a small firm for myself."

Mr. Ormerod's classic answer is: "Buy a very large one and wait."