..this thread has for some time now cautioned about Buy and Hold being necessarily the formula for success as we've been led to believe.
..what happened to Boeing? There are only 2 companies in the world that monopolise the passenger aircraft business- Boeing (US) and Airbus (France).
..YET, Boeing self-imploded, compromising aircraft safety to cut costs for short term financial gains.
..whether Boeing becomes an Enron remains to be seen. But it underscores why we cannot assume that a supposedly strong business can continue to remain strong indefinitely.
Over the past 5 years, Boeing has returned -55% despite Dow and S&P500 making new all time highs. It has plunged -62% from its peak price in early 2019. And anyone who bought in early 2009 would have made a 10.4x multibag return in 10 years and succumbed to complacency, holding to today would have lowered returns to 3.95x.
Those who have had multibag returns cannot simply assume that Holding for longer would be Better; a classic local example has been CHN.
