I don't have any opinion about the long-term prospects of General Electric (GE) . I also have no interest in owning the stock.
GE is a classic example of what is wrong with much of the investment "wisdom" on traditional Wall Street. That wisdom is the belief that they can effectively identify a "good value" and then can time a favorable entry point.
Over and over this is the investment strategy that leads to the biggest losses. It is even worse in the case of GE because its long-storied history that has given it a patina of respectability. How can the company founded by Thomas Edison not be a great one?
For at least the past year there has been a parade of "experts," especially on CNBC, trying to catch a turn in the stock. The dominant thinking is that it just can't get much worse. They have not only been wrong about GE, but gloriously so.
Is it possible that this time GE has finally hit rock bottom and is ready to turn up? Absolutely, but you have to be quite an optimist to believe that this is a stock that is going to produce a market-beating return in the years to come.
If you are considering a purchase of GE I suggest that you have made the mistake of not doing enough research into alternative investments. Don't be seduced by the thinking that just because it is trading at the lowest price in decades it is a great value. That is not logical thinking.
Stocks are not like items in the grocery store where a low price indicates good value. Forget the past and focus on the future and you will find many stocks with better growth prospects, cheaper valuations and far less baggage.
The business media are going to continue to give GE a lot of coverage simply because it is interesting how such a great company turned into a total disaster. It is a cautionary tale and should be appreciated solely on that basis.
GE doesn't deserve your time or your precious capital.