Guru John Hussman (Trades, Portfolio) received a Ph.D. in economics from Stanford University in 1992, a master's degree in education and social policy in 1985, as well as bachelor’s degree in economics from Northwestern university. Hussman has a simple checklist of mental models that he uses when making investment decisions.Â
In the summer of 2000, Hussman launched Hussman Strategic Advisors Inc. He then began the Strategic Growth Fund, which began on July 24, 2000. Since then the firm has expanded and they currently own 203 stocks with a total value of $704 million.
In the fourth quarter of 2015, Hussman purchased 350,000 shares of General Electric Co. (GE, Financial).
General Electric is a diversified infrastructure and financial services company that was incorporated in 1892. Its product and services range from aircraft engines, power generation, oil and gas production equipment, and household appliances. The company also has operating segments in power and water, oil and gas, energy management, aviation, healthcare, transportation, appliances, and lighting. General Electric is a firm believer that their industry leading software is going to provide a significant advantage in the long term by reducing costs and increasing efficiency.
General Electric has a market cap of $283.46 billion, an enterprise value of $398.96 billion, a P/B ratio of 2.88 and a dividend yield of 3.21.
Below is a Peter Lynch chart for General Electric.
General Electric has a great vigilant leader with CEO Jeff Immelt. Immelt has been named World's Best CEO three times by Barron's. Since Immelt was named as CEO of General Electric, the company has been named "America's most admired company" in a poll conducted by Fortune Magazine as well as, "one of the world's most respected companies" in a poll conducted by Barron's and the Financial Times.
General Electric has two severe warning signs that are worth mentioning. The company's gross margins have been in long-term decline with an average decline of 2.8% over the previous 10 years. The company's operating margin has also been declining over the previous five years at 1.4%.
I agree with Hussman that General Electric is a good investment for the long term. Immelt is a great leader and the company has nearly 125 years of experience in their industry. I believe that leadership and experience will be General Electric's differentiation advantages moving forward.
Cheers to your investment success.
