Thread by @ViaWealthy

Why looking at past 10 years record and investing in such large cap proven stocks is not great method.
Sometimes coffee may not smell right. These are largest global companies in 2000. Gave great 2 decades run from 1980. Now it's 20 years. Return frm 2000 is "ZERO".
Thread

By the time Welch stepped down in 2001, he had transformed GE from a $25 billion manufacturing company into a $130 billion conglomerate of “boundary-less” segments.

Dividend history tll 2000. It went global, shutting down unrelated businesses. Jack Welch books are best ones to read if you are company manager or factory owner.

2008 financial crisis hit GE hard.Warren Buffett stepped invested $3 billion in 2008 to stabilize GE’s operations. but GE’s troubles didn’t end Its $9.5 billion acq of French transportation company Alstom’s power business in 2015 was flop. well knwn large performer till 2000

Wallmart : Wal-Mart has failed in some countries (e.g. Germany, South Korea . it was 10 n then 50 bagger As peter lynch mentioned.

There was huge margin clash among superstores. Many players and huge investment reqs stagnated markets. At the same time online delivery took off.

HP : 1980’s saw HP continue with its strategy of innovation and creativity in the development, design and manufacture of its products. The mission was to become a global leader whose products reflect innovation

We all remember this HP buyin Compaq : many of you had compaq P3/p4 at home.

Coca cola :

People wrote essays on how great century product it is . Its run up till 1996 was crazy. Its neither a tech co too like some others here. Great cash flow business.

Coca cola has given below price up tick since 1998

While it was real giant , competitor acquring and globally expanding , food chain tie ups company also endorsed product by Warren , it failed to give great returns to shareholder of 1996/98 , thinking abt it as decadal bet with prior records n numbers.

AT & T : In 1998, AT&T announced a US$1 billion alliance with BT to offer global voice over IP (VoIP) services, called Concert, sparking rumors of a potential merger But the parties fought for control of the project and could not even agree on the alliance's name.

Promising future
In 1999, AT&T acquired the Olivetti & Oracle Research Lab, from Olivetti and Oracle Corporation. In 2002, it closed down the research part of the lab.

Also in 1999, AT&T paid US$5 billion to purchase IBM's Global Network business giving it advantage

An Industry that keeps on disrupting itself with 300 billion USD kind of capex , most players are bound to suffer. You may be suprised to knw world's largest telecom players gave zero return in last 10 yrs

Bank of America

In 1998, Bank of America possessed combined assets of $570 billion, as well as 4,800 branches in 22 states with Merger of NationsBank and BankAmerica

A series of acqusition history is to be written , may be longest would be by Bank of America

1992 Security Pacific
1994 Continental Illinois
1997 Robertson Stephens
1998 merger NationsBank
2004 FleetBoston
2005 MBNA Credit Card
2006-7 Lassale bank and US trust co

See return to share price.

The point is a proven large good business is not enough for a very good total return to shareholder. Its better to buy companies that can be part of Index s&P or Nifty in Future. Stock aisa ho jo nifty me chala jaye!

Any great investor is known by his one great stock pick, large investment in it and his great patience to hold it.

Dhairya and Shourya. (patience and courage)

That stock mostly belong to small n mid cap catagory. True bagger is when sales multifolds n is much > than mcap

If one wants to be rich, there is no much alternative than exponential growth investing where small mid size company becomes a prominent large company.