Contact Us
Firm Overview
Why Legend Is Different
Client Types
Professional Biographies
Frequently & Rarely Asked Questions
Risk Spectrum
Investment Strategies
Second Opinion
Global Investment Pulse
Event Calendar
Press Center
Legend News
Clients Only
Career Opportunities
Directions
Newsletter Sign-up
Site Search
Site Map
Home
Tell A Friend About This Website
 
 
 
Informational Booklets   

 

Phone: (412) 635-9210
  (888) 236-5960
Connect With Legend:
Subscribe to me on YouTube

Yesterday's Great Companies

Great companies of today may not continue to be the great companies of tomorrow.  In fact, history suggests that this is rarely the case.  Changes in technology have contributed to the dethroning of the old leaders and the creation of new ones.  For instance, wireless communications and the Internet have weakened profits of what were once blue-chip telephone companies.  Polaroid is out of business due to changes in photography, and now even Eastman Kodak is facing significant challenges.  Other examples include airlines replacing passenger trains and discount stores replacing the likes of Montgomery Ward.  Therefore, buying stocks in today’s biggest and richest companies may not lead to superior results.  Owning the biggest companies, “putting them away and forgetting about them,” is probably not the most prudent strategy.  The bigger the company, the more difficult it is to generate earnings growth.  The following list of former market leaders suggest that size and a quality image are no guarantee of future prosperity as these companies either do not exist or are still around, but whose market capitalization (size) has decreased dramatically.

1917:  The World War I

Era1945:  Past World War II

1966:

Swift

Republic Steel

Polaroid

Armour 

Montgomery Ward

International Nickel

Bethlehem Steel

Liggett & Myers Tobacco

Pan American

Pittsburgh Coal

Youngstown Sheet & Tube

Zenith

Cambria Steel

Warner Brother Pictures

Baldwin Locomotive

Paramount Pictures

American Sugar Refining

Wheeling Steel

Anaconda Copper Mining




©2018 Legend Financial Advisors, Inc.®. All rights reserved.