Wednesday, August 7, 2013

Not the fault of the company's poor performance by the industry - HBR

Between 2002 and 2012 the shareholder return of the average airline got a boring 5.6% per year. After-sales services diversified a notch were deeper to win only 4.2% per year. Worst computer and peripherals companies, with an average annual return of 3% - were hardly the rate of inflation in many parts of the world.


It was just lousy timing, if you were, in one of these industries in the lower quartile total shareholder are random (price change plus dividend parts) in the 10 years up to 2012.


But one thing is that you probably, can score, if you're in one of those industries that average TSR in your area will be better over the next 10 years. Maybe by a lot.


Source: Harvard Business Review


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