GE has remained a key arm in America’s military-industrial complex over the succeeding eight decades, and that will be a focus after the spinoffs. Production reached $1 billion the next year, “almost entirely on war goods,” we wrote. GE was created through an 1892 merger of Edison General Electric and Thomson-Houston Electric, orchestrated by John Pierpont Morgan, pictured here circa 1902. In 1941, GE was expected to “produce half a billion dollars’ worth of goods,” 25% above its 1929 record high, and about half in defense orders, which GE insisted were taken “on a low profit basis.” While GE’s business fell 67% during the Great Depression, Barron’s reported, it reached new heights during World War II. And the company’s “young men” endured an executive-training program known as being “on test.” Graduates included future CEOs Philip Reed and Charles Wilson. By 1926, its success was “almost proverbial,” Barron’s wrote, with shares trading around $370 and a price/earnings ratio of about 20, higher than most “so-called blue-chip stocks.”Ī pioneer in corporate research, GE was spending $2 million annually at its New York state laboratory, “an institution of international authority and importance,” according to Barron’s in 1930. In the 1920s, with business roaring and many Americans enjoying newfound prosperity, GE led the way in consumer goods like refrigerators and electric fans. The company dominated the heavy-equipment market for utilities and factories as the U.S. GE was created through an 1892 merger of Edison General Electric and Thomson-Houston Electric, orchestrated by J.
But, after more than a century of radical transformations, why sell now? “ GE is a very complicated company,” as Al Root writes. Its answer is a radical transformation, splitting off its healthcare and power-and-energy units into separate companies, leaving legacy GE with the aerospace-and-defense business. The Pieces Are Worth More Than Wall Street Thinks. GE’s Massive Shake-Up Isn’t Enough to Sway a Bear.Why GE and Amazon Are Among This Opportunistic All-Cap Fund’s Favorite Stocks.
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