4 ms·
If you assume Immelt was a great CEO and was just victim to Welch leaving GE in a very over-valued state, you'd expect the stock's performance to start off lous
by thesausageking 9y ago
If you assume Immelt was a great CEO and was just victim to Welch leaving GE in a very over-valued state, you'd expect the stock's performance to start off lousy and be better as Immelt's 16 year tenure went on. But that's not what we see. If you only take the last 10 or 5 years, GE has greatly underperformed both the market and similar industrial stocks.
Total return for 5 and 10 years:
GE 6.6% -1.6%
S&P 500 13.7% 7.6%
Diversified Industrials 13.0% 6.4%
- Spooky23 9y agoFrankly I don't know enough to say the Immelt was good or bad. However... based on the experience of friends and colleagues who worked for different divisions of the company, I think that Welch's glory was a little overstated and not well understood at the time.