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Taking Stock: General Electric offers cure for an aggressive portfolio

Malcolm Berko: Impressive blue chip company has gone beyond light bulbs, electric motors and household appliances.
By Malcolm Berko, For The Oklahoman Published: March 29, 2014
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There is certainly no denying that this very impressive blue chip company is being managed full steam ahead, and recent acquisitions in key fields (water, power and aerospace) mean that GE should greatly increase its profitable market share in these sectors.

Many of us remember GE as light bulbs, electric motors and household appliances.

Yes, that’s still GE, but today this classy company gets billions in revenues from aircraft engines, mining, information technology, water processing, oil and gas, lighting, chemicals, business and consumer finance, nuclear power generation, medical imaging, pumps, pipelines, compressors, locomotives, traffic control, real estate, global banking, marine and military engines, missiles, software, health care, wind power, gas turbines, and drug discovery, and this list continues.

I don’t know of any company that is as successfully diversified.

And some on the Street (Carl Icahn, for one) believe that the breakup value of GE could be about $105 a share.

However, I'm certain GE shares won’t match the performance of Google, Apple, NetSuite, Priceline.com, Salesforce.com, Amazon.com or Netflix or the performance of a few others in your portfolio that I also did not recommend.

It seems to me that your account is too aggressive, and at your age and stage, you ought to tone down the volatility with a selection of growth and income issues.

Your choices in the past have been excellent, but perhaps it’s time to hire an experienced money manager and ensure your continued excellence.

Please address your financial questions to Malcolm Berko, P.O. Box 8303, Largo, FL 33775, or email him at mjberko@yahoo.com.