What do LinkedIn, FedEx, BurgerKing, Hewlett Packard and Fortune magazine have in common?

[GreatGazoo]

Want a hint? Some more with dates attached:

UPS (1907)
MicroSoft
AirBnB (2008)
CNN (1980)
Square (2009)
AllState (1931)
Amgen (1980)
Krispy Kreme (1937)
MailChimp (2001) ?

Answer: All of them were started during Recessions (or worse). LinkedIn makes perfect sense as the kind of business that would be started during a downturn -- people got fired and laid off. What do they need? A way to network and look for jobs.

Other businesses were not started during Depressions but greatly expanded when one hit. White Castle hamburgers were 5-cents each. White Castle started in 1921 and expanded greatly during the Depression. In 1932 they created Paperlynen as a subsidiary that made paper goods for their restaurants. In 1933 they bought out co-founder Walter Anderson. In 1934 they added Porcelain Steel Buildings (not the most creative name).

Businesses created during downturns often weather economic storms better than those who rely on optimism and easy money. No matter how good things get, they will always turn down again at some point and these businesses are good either way. I don't know much but I know that economics are often like an M.C. Escher drawing -- parts make sense but when you look at the whole thing it seems impossible.

[CrispyQ]

1. Kick for an interesting thread. -nt

[GreatGazoo]

2. Thanks

I started my business in 2008 so I have thought a lot about what works and why.

I'm also a Hollywood history addict and former studio publicist. The film business traditionally did well in bad times, like the 1930s. In 1934 Shirley Temple was grinding out movies and they credit her with single handedly saving the studio at a time when the economy was "ever so cross". In 1936 they built her a massive "bungalow" on the studio grounds and then had Greens and Craft Services cover it with flowering vines.

[CrispyQ]

3. A friend of mine sells Mary Kay & very successfully, too.

She tells new recruits that there are three non-essential things people spend their money on in bad economic times: makeup, booze, & entertainment.

[GreatGazoo]

4. I always look for stocks that are up or flat in market conditions like the present

Tariff-proof, recession-proof and solidly valued. Unfortunately the answer this time isn't pretty or something I would be comfortable owning: Cigarettes and nicotine-delivery systems, up 10% in the last two weeks:

https://www.marketwatch.com/investing/stock/mo?mod=mw_quote_switch

Ugh. Also war stuff for Europe -- up 80% in two weeks:

https://www.marketwatch.com/investing/stock/saab.b?countryCode=SE

Or just bet on disaster:

https://www.marketwatch.com/investing/fund/sqqq

Make up is a much better option.