Dow stocks: General Electric
This is the second in my series on stocks in the Dow Jones 30. We’ll be adding more in the coming months, as we seek to expand stock coverage on InvestorBlogger. These articles are being provided by our wonderful team of writers headed by Anuj.
General Electric (NYSE: GE), founded in 1878, has always looked for new ways to grow, not only enrich its coffers and its stockholders’ but to improve the lives of its customers. Consequently, the company has expanded over the years from manufacturing the first light bulbs to providing energy and more. In the 1930’s, GE began making home appliances as well as financing the consumers that bought the goods. Over the years the company has diversified its holdings so that today it’s one of the biggest and most versatile conglomerations in the world. 
The first thing most investors look for, besides a steady bottom line profit, is whether a business provides a temporary service or a lasting demand. Many businesses start, grow, profit and sink out of sight in as little as a year. Companies that supply a steady or increasing need, however, are usually worthy of consideration when an investor is looking for a good return. General Electric has expanded its interests to include not only consumer necessities like water systems, window air conditioners, home electronics and surveillance systems but commercial products such as medical imaging equipment, plant turbines and jet engines. Over the last century, GE has developed into a company that provides goods and services that the world is unable or unwilling to do without, insuring a steady growth of both size and income.
Lately, however, General Electric stock has seen a fairly steady decline. Nearly every stock on the market has headed down in the past few months, though, due in large part to skittish investors and the cost of oil. While you may not think it’s a good time to buy stocks that are losing value, the basic idea of the stock market has always been to buy low and sell high. This makes it a very good time, theoretically, to buy GE stock and sit on it until values begin to rise once more.
Stocks such as General Electric will eventually recover, in part because their very existence is tied into the sort of products that are essential to modern life. People will always need power, clean water, climate control, medical tests and ways to travel. GE provides all of that and more. It’s inevitable that the company will recover from the present bear market and anyone buying GE stock at its current low price will likely be very happy with their decision in the future.
On a personal note: I used to own GE for a few years, or at least I thought I did! I would have like to own GE but never bought it! Oh, well.
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