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Was reading the book “How the Mighty Fall” by Jim Collins recently, and I thought it was good enough to summarise here for the benefit of all Patrons (have made it available to all Patron tiers).

Essentially, this book looks at how once-mighty companies like Kodak can fall so far so fast. It examines the downfall of great historical companies, and splits their decline into 5 stages. In all stages except for Stage 5, the company can still be rescued by prudent management, as long as it doesn’t completely exhaust all its options or cash.

Many of us invest in blue chip companies because of the perceived stability and balance sheet strength, and on the basis that they will still be around in