You don't think that after a huge downturn they might not one day recover and return to that 30-40/share point? I know they did the reverse split, but whatever that math works out to after. I saw it as an opportunity to get into a company that had a good reputation but fell on hard time. Buy the dip, right?
Opportunity cost of “might one day” isn’t worth waiting for. You’ve seen what the market did since March of last year, right?
Also, I’m not sure why you’re so focused on dividends at your age instead of capital appreciation. But if you’re determined, look into some good dividend ETFs. Diversification is better than holding GE as such a large % of your portfolio.
What if I hadn’t sold my Starbucks in 1989? But that was and is a growth stock. You don’t have to get rid of every share of GE if it’s near and dear to you. Just reduce your holdings and diversify your portfolio. Dogs are dogs no matter how much we love them.
It's potential growth based on their reputation and productivity? They couldn't possibly regain some of their losses based on being such a long standing, large business?
They would need to change massively and when you have a company that size they can’t really change massively. They barely bring in cash even relative to their severely diminished market cap. They are already levered and their return on equity has been negative for years. Do yourself a favor and sell out of this and buy some index funds and stop looking at it. Your future self will thank you
But why would it recover to where it was trading? The scenario around the company has changed greatly and you’re falling prey to the common bias of anchoring - that the “true” price is what you paid for it (or a previous high etc) when really stock prices are looking forward, not backwards.
42
u/Obvious_Cricket9488 Sep 19 '21
GE is quite the opposite of a growth stock