04 The Lindy Effect
Ever heard of the Lindy Effect? It can help you decide whether a business idea has staying power.
Showbiz origins: Writer Adam Goldberg made an odd observation about the fame of comedians in the 1960s. He called it “Lindy’s Law” because entertainers used to hang out at a New York City deli called Lindy’s.
How this applies to business: Although new ideas and trends pop up with regularity, the Lindy Effect assumes time-tested ideas make sensible bets for entrepreneurs. I heard about the Lindy Effect from a talk given by Jon Staff, whose company Getaway was featured in our story about unplugged vacations. He started his company because he knew humans have craved nature and leisure for centuries and likely will for centuries more.
Critical thinking: This doesn’t mean you should go full throwback. It’s about modernizing and innovating time-tested ideas.
Want more? Watch a video on applying the Lindy Effect to investing.