> It can (and often does) make sense to invest in industries in terminal decline as price paid for an asset’s cash flow is the primary determinant if returns fo

> It can (and often does) make sense to invest in industries in terminal decline as price paid for an asset’s cash flow is the primary determinant if returns for the investor. You can buy coal stocks for 25%+ earnings yields. Even if those plants are phased out in 6 or 7 years, one can make solid returns. For Blackrock, those 25% yields you talk about don't exist. If Blackrock were to retain a significant investment in those companies, share prices would be higher and yield lower. What makes sense for a small investor often doesn't make sense for large corporate investors. That said, investments like what you describe have their own risks. At this point it largely depends on contracts and how quickly alternative power sources can ramp up. You are the second person to mention tobacco, and I think it's a poor comparison. People are literally addicted to tobacco which guarantees long term demand. Even if that demand is decreasing over time, it's predictable and not severe. Coal does not share those characteristics.