VWSYF - Could General Electric Be a Millionaire Maker Stock?
It's a question that might seem comical to younger investors, but there was once a time when General Electric (NYSE: GE) really was a millionaire maker stock. During the period of Jack Welch's tenure as CEO (April 1981 to Sept. 2001), the stock generated a total return of an incredible 4,280%. However, in the nearly two decades since then, it's lost 71.6% and is down 52% in the last decade alone. Can GE's glory days return, or is more pain to come for long-term investors?
One way to look at long-term investing is to ask yourself the following question: What views of the world am I manifesting by taking a long-term position in this stock? In the case of GE, there are two key questions:
Both of these questions relate to long-term structural issues for GE, and the resolution to them will probably decide the fate of the stock price over the long term. Let's look closer at why these questions are key, and what they mean to long-term holders.