Ever wondered why gold, real estate, and even Bitcoin have held value for so long? The answer might lie in a cool concept called the Lindy Effect—a theory that predicts the longer something has survived, the longer it’s likely to last.

What Is the Lindy Effect?

The Lindy Effect, popularized by mathematician Benoit Mandelbrot and later by Nassim Taleb, suggests that age equals durability. If an idea, technology, or investment has existed for decades (or centuries), it’s more likely to keep going strong.

Think about:

• Gold → Used as money for thousands of years, still valuable today.
• Books like Shakespeare & The Art of War → Survived centuries, still widely read.
• Bitcoin → Survived multiple crashes and still holds major value.

How It Applies to Investing

Smart investors use the Lindy Effect to predict what will last:

• Stocks: Companies like Coca-Cola, Apple, and Microsoft have stood the test of time.
• Real Estate: People will always need places to live and work.
• Precious Metals: Gold has been a store of value for thousands of years, while some new assets disappear overnight.

What This Means for You

Instead of chasing trends, the Lindy Effect suggests investing in things that have proven themselves over time. If a company, technology, or idea has lasted for decades, it’s more likely to continue thriving.

Would you rather invest in something time-tested or take a gamble on something new?