So many lessons can be learned from this article, beyond its obvious content. It would be very disappointing to own a stock like this (GE) that misses out on a broad stock market rally. Waiting 4 months for the new CEO, John Flannery, to unveil his strategy for the company might indicate it's going to be very complicated. GE used to be a company with amazing senior leaders, in the Jack Welch days, when the company's value rose 4,000% over his 20 year tenure. Senior leadership is obviously extremely important.

One concept you'll find in financial advice world is something called the "forever stock." This notion is that you can find a great company and put your money in it, not have to watch it and it will be a good investment forever. I couldn't disagree more with this advice. This company along with companies like IBM, GM and many, many others have been touted as forever stocks. All companies eventually have forces outside their control (e.g. government regulation, force majeure events), new competition, leadership changes, technology advancement, etc. which can cause even the largest companies to be impacted financially or even go out of business.

There is no substitution for you reviewing your investments on a regular basis and staying current of financial and world news. I know this can be difficult to do yourself if you don't have the time or the knowledge to know how to do this.

I applaud you for staying connected to my good friend, Sean Hyman. He'll give you sound advice and it's based on countless hours of research, analysis and reading. He is great at connecting the dots on how world events, macro economic shifts and financial markets could affect your investments. And, maybe most importantly, he is a man of integrity. He truly wants you to be successful. Hard to find people like Sean in the investing world.

Even if you're a seasoned investor like me, I listen very closely to Sean. He has helped me understand areas that I've not invested in before and to make money in them, such as commodities.

Comments (1)
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Sean Hyman
Sean Hyman

Editor

Even Buffett isn't quite as "forever" as he claims when you look at his sells. Correct. GE has broken its multi-year uptrend line and broken below its 200-week moving average. While that's not a guarantee of a trend change, it increases the likelihood of it a lot. So it's something to keep an eye on, on the weekly, multi-year charts. And thanks for the kind words. I sure do appreciate that a lot.