Title: 20 Timeless Stocks to Own — The Lindy Effect (Part I) Show: Compounding Quality (Substack, paid post — compoundingquality.net) Guest: Pieter Slegers / Team Compounding Quality (author; byline "Compounding Quality") Date: 2026-08-06 URL: https://www.compoundingquality.net/p/20-timeless-stocks-to-own Length: written post — no timestamps Note: Paid-subscriber post captured via Stephen's logged-in session. Body text verbatim; UI chrome removed. Fiscal.ai performance charts noted inline as [Image — ...]. Part I covers names 20 through 11; Part II ("10 Stocks for Life", 2026-08-09) covers the ten oldest.
Do you know about the Lindy effect?
The longer something has been around, the longer you can expect it to stay around.
Let's see why this is so powerful and how we can use it to become better investors.
The Lindy Effect
Do you know Lindy's Delicatessen in New York City?
It was a restaurant on Broadway that performers would often eat at.
The story goes that comedians used to joke that if a Broadway show had been running for two weeks, it would probably last another two weeks.
If it had been running for two years, it would probably last another two years.
Well... It turned out that they were right.
How the Lindy Effect works
If you're 80 years old, the Lindy Effect doesn't mean you'll live to 160.
The Lindy effect only applies to things that are lasting long:
Ideas
Technologies
Art
...
These things don't age like human beings.
Every day something survives, it proves it is useful and resilient.
That makes it more likely to survive another day.
Think about these examples:
Books: Marcus Aurelius's Meditations is much more likely to still be read in 100 years than the latest business strategy book to hit the New York Times bestseller list last week
Technology: The bicycle has stayed almost unchanged since the 1800s. Meanwhile, trends like Segways, hoverboards, and electric scooters have come and gone.
Food: Every few years, a new diet or supplement becomes popular. But people have eaten olive oil, bread, and fish for thousands of years. They'll probably still be eating them 100 years from now. The latest diet products may not be around anymore.
You can use this concept in your daily life too.
You'll probably still wear a quality pair of classic leather shoes in 10 years. But the newest trendiest pair? Unlikely.
But did you know that The Lindy Effect can also help you in investing?
The Lindy Effect In Investing
Capitalism is brutal.
50% of all businesses fail within 5 years
80% of all businesses are gone within 10 years
[Image — business survival rates. Source: Visual Capitalist]
But a small number of exceptional businesses have survived for more than 100 years.
Some companies in Japan have even been around for over 1,000 years.
Lindy Businesses
These very old businesses could be considered Lindy businesses.
You probably know Deere & Company as John Deere.
It's a Lindy business that has been around since 1837 (!).
It began when a blacksmith named John Deere made a polished steel plow from a broken sawblade.
The basics of farming haven't changed in thousands of years.
That means Deere's expertise, brand, and reputation have been growing for nearly 200 years.
Now, they are a global giant making GPS-guided, autonomous tractors.
And they still make plows.
If a business has survived 189 years of wars, recessions, and technological change...
The Lindy Effect suggests it is likely to survive another 189 years.
That's important because the value of a business depends on all the cash it will generate in the future (discounted to today).
The Lindy effect states that the older a business is, the longer it will survive.
For investors, a longer life means more future cash flow.
The data proves this works.
Here is the performance of a portfolio of 100-year-old companies compared to the S&P 500 since 2000.
[Image — portfolio of 100-year-old companies vs the S&P 500 since 2000. Source: Marketsentiment.io]
20 Lindy Companies
Buying Lindy companies is a great way to build wealth in a very boring way.
That's why today and on Sunday, we will cover 20 Lindy stocks you should know.
Let's dive in right away.
20. McDonald's ($MCD)
McDonald's runs one of the world's best known fast-food businesses.
The corporation owns the underlying real estate and collects rent and franchise fees from operators.
Founded: 1955 IPO: 1965 History: Ray Kroc founded the company in 1955, expanding on the original restaurant opened by the McDonald brothers in 1940.
The Lindy Effect
Food is a fundamental human need that isn't going anywhere.
The restaurant business can be tough, but McDonald's is essentially a real estate company that collects rent and royalties.
McDonald's global brand and scale make it hard to compete with.
How Has McDonald's Performed?
McDonald's has a total return of more than 6,000% since 1990.
[Image — MCD total return since 1990. Source: Fiscal.ai]
19. Marriott International ($MAR)
Marriott manages a global portfolio of hotel brands like Ritz-Carlton, JW Marriott, and Bonvoy.
Independent operators own the physical buildings while Marriott provides the operating systems.
Founded: 1927 IPO: 1993 History: J. Willard Marriott opened a root beer stand in Washington, D.C., which gradually expanded into a global hotel empire.
The Lindy Effect
Hotels have been around for thousands of years (travelers will always need a place to stay).
Marriott earns fees without owning most of its hotels.
Its brands and loyalty program keep customers coming back.
How Has Marriott Performed?
Marriott generated over +10,000% for shareholders since its IPO in 1993.
[Image — MAR total return since 1993. Source: Fiscal.ai]
18. Walt Disney ($DIS)
Disney creates media like movies, and TV shows, and operates global theme parks.
It owns the IP rights to iconic characters and stories like Mickey Mouse, Cinderella, and Star Wars.
Founded: 1923 IPO: 1957 History: Walt and Roy Disney started an animation studio in Hollywood known as the Disney Brothers Cartoon Studio.
The Lindy Effect
The human desire for great stories will never go away.
Disney's characters have been loved for generations.
Its brand and cultural importance gives Disney pricing power across its businesses.
How Has Disney Performed?
Disney's stock has been relatively flat over the past decade.
But since 1990, it's up more than 1,300%.
[Image — DIS total return since 1990. Source: Fiscal.ai]
17. Moody's ($MCO)
Moody's provides credit ratings and financial research for the global financial system.
Investors use Moody's ratings to assess corporate debt.
Founded: 1909 IPO: Spun off as we know it today in 2000 History: John Moody published his first bond-rating manual in 1900, and Moody's Investors Service officially began rating securities in 1909.
The Lindy Effect
The financial system depends on credit ratings.
Only a few companies dominate this market.
It would be very hard for a competitor to gain the trust Moody's has.
How Has Moody's Performed?
Moody's is up more than 6,000% since its spin-off in 2000.
[Image — MCO total return since 2000. Source: Fiscal.ai]
16. Bank of America ($BAC)
Bank of America holds deposits and provides lending to consumers and corporations.
Millions of customers use their accounts daily for basic financial needs.
Founded: 1904 IPO: 1979 History: A.P. Giannini founded the Bank of Italy in San Francisco to serve working-class immigrants; it was later renamed Bank of America in 1930.
The Lindy Effect:
People will always need a safe place to keep their money.
Bank of America's scale gives them a huge low-cost deposit base.
Changing banks is a pain, creating switching costs, and strict regulations protect BoA from competition.
How Has Bank of America Performed?
Bank of America has delivered a total return of more than 1,300% since 1990.
[Image — BAC total return since 1990. Source: Fiscal.ai]
15. 3M ($MMM)
3M makes thousands of specialized industrial and consumer materials and adhesives.
Factories around the world rely on their adhesives and abrasives.
Founded: 1902 IPO: 1970 History: Founded as Minnesota Mining and Manufacturing to mine corundum, it quickly pivoted to inventing and producing abrasives, adhesives, and consumer goods.
The Lindy Effect
Many industries rely on 3M's products every day.
Its products are built into thousands of supply chains.
Years of innovation and research make 3M difficult to replace.
How Has 3M Performed?
Since 1990, 3M has generated a total return of over 2,600%.
[Image — MMM total return since 1990. Source: Fiscal.ai]
14. PepsiCo ($PEP)
PepsiCo owns a portfolio of popular snack and beverage brands like Doritos, Frito-Lay, Pepsi, and Lipton.
Their products fill grocery shelves and convenience stores worldwide.
Founded: 1898 IPO: 1978 History: Pharmacist Caleb Bradham created Pepsi-Cola. The modern corporation was formed after a 1965 merger with Frito-Lay.
The Lindy Effect
People will always buy drinks and snacks.
Its brands are known and trusted around the world.
Its distribution network is almost impossible to match.
How Has PepsiCo Performed?
PepsiCo has returned nearly 3,100% to shareholders since 1990.
[Image — PEP total return since 1990. Source: Fiscal.ai]
Now let's dive into the top 3.
13. Johnson & Johnson ($JNJ)
Johnson & Johnson makes and sells pharmaceuticals and medical devices.
Hospitals and patients rely on their treatments constantly.
Founded: 1886 IPO: 1944 History: The Johnson brothers founded a maker of sterile surgical dressings in New Brunswick, NJ.
The Lindy Effect
People will always need healthcare.
It sells products that hospitals and patients depend on.
Its size allows it to keep developing new medicines and products.
How Has Johnson & Johnson Performed?
J&J has returned 8,000% to shareholders since 1990.
[Image — JNJ total return since 1990. Source: Fiscal.ai]
12. PPG Industries ($PPG)
PPG makes specialized industrial paints and coatings.
Aerospace and automotive manufacturers use these products to protect their equipment.
Founded: 1883 IPO: 1983 History: Founded as Pittsburgh Plate Glass, it was the first commercially successful plate-glass maker in the United States before expanding heavily into paints and coatings.
The Lindy Effect
Buildings, cars, and planes will always need paint and coatings.
Its products are highly specialized, making them hard to substitute.
Customers rarely switch because failure is expensive.
How Has PPG Performed?
Since 1990, PPG has compounded at 9.7% per year.
The stock generated a total return of more than 2,800%.
[Image — PPG total return since 1990. Source: Fiscal.ai]
11. Chevron ($CVX)
Chevron explores for, produces, and refines oil and natural gas.
They're vertically integrated, meaning they control the entire chain from the wellhead to the gas station.
Founded: 1879 IPO: 1921 History: Started as Pacific Coast Oil, which later became Standard Oil of California, a key piece of the original Standard Oil monopoly.
The Lindy Effect
The world will always require energy, and Chevron has been providing it for decades.
Its vertical integration and huge scale keep it profitable through commodity cycles.
Chevron's infrastructure would be almost impossible to recreate today.
How Has Chevron Performed?
Chevron has returned 4,000% to shareholders since 1990.
[Image — CVX total return since 1990. Source: Fiscal.ai]
Conclusion
That's the first half of our list.
The companies mentioned already survived wars, recessions, inflation, technological change, and countless competitors.
On Sunday, we'll look at the ten oldest companies on the list, and why they should keep compounding for decades to come.
Everything In Life Compounds Team Compounding Quality
Book: Order your copy of The Art of Quality Investing here
Used sources Interactive Brokers: Portfolio data and executing all transactions Fiscal.ai: Financial data