The phenomenon of persistence of profits has been studied for a considerable time in both developed and developing countries. However, the empirical evidence is inconsistent: while some research suggests that companies operating in developing countries display lower persistence levels, other studies find this to be the case for firms in developed countries. This paper uses a dynamic panel approach to examine the persistence of profits of companies operating in Chile. The results suggest that Chile's competitive environment is relatively weak and incapable of eroding company performance significantly. Chile displays lower levels of competetiveness even than countries with lower levels of economic development.