Why am I writing about this? My husband had directed me, a few years ago, to put some money into GE (and a few other old-school companies, as well). I did it under my E-Trade account, so I get the news first (although he makes any decisions about the investment).
I received notification about some changes – GE is spinning off several of its units as separate companies – GE Vernova, GE Health, and GE Aerospace. If I heard about the GE Health spinoff, it slipped past my conscious mind. We’ve spent a few years with more than enough to keep the brain cells busy – moving, dealing with 2 major injuries, COVID, and family concerns. We only own 2 shares, so it’s success or failure won’t change our lives significantly.
GE Vernova appears to be focused on Energy – New Green Energy, to be precise. Although that’s often considered (primarily by the Left) to be a Growth Industry, I’m less enthralled by the prospect. Again, little investment, little concern.
GE Aerospace (wonder why the Euro spelling?) appears to be piggypacking on the success of SpaceX in achieving their mission. Lotsa luck with that. In GE’s own words from their report announcing the spinoff:
” GE Aerospace’s sole focus will be executing its bold vision to invent the future of flight, lift people up, and bring
them home safely. With nearly 41,000 commercial engines at work in more than 70% of global airlines, and a
diverse portfolio of more than 26,000 defense engines, this exceptional franchise is a global aerospace leader.
And more than 70% of its revenue is derived from aftermarket services that not only have attractive economics,
but also keeps the team closer than ever to our customers. GE Aerospace will continue to generate significant
value for decades to come, leveraging the quality of its technology and product development plans, the energy
and collaboration of its team, and its positioning as the industry’s largest and youngest fleet. “
I dunno. The 3 new companies don’t seem like innovators, they look like copycats. If the investment makes money, I’ll be happy, but I wouldn’t risk my retirement portfolio on it.
2 comments
If I were looking for a focused investment, I’d look into GE Health. The graying of America suggests that medically oriented companies have a bright future, if they can deliver the goods…and if they’re allowed to do so.
Makes it easier to shed those divisions later, Jack Welch grew it with all the acquisitions, his predecessor jeffery imelt exploited it, He always had an empty corporate jet following him every where he went, and left it to start rotting, and now here we are.