Dangit, Arley! No sooner do I post my rather wordy essay on Return on Equity than you have to go an make a statement that I feel requires some caveats.

I'll keep it short. All three of the industries you mentioned have undergone significant changes in the last 30 years so that they no longer resemble the industries that have generated the historical returns that make them so appealing to an investor. There are very good companies in each of those industries (banking, insurance, and utilities) but caveat emptor.

For a small inkling of what I am talking about, the history and current troubles of Freddie Mac are a good parallel.

9:51:36 PM  #  

Alright, as promised, here is my latest investment article on Return on Equity.

Feel free to poke holes in it, comment, or ignore away.

9:44:02 PM  #  

Sun Microsystems' Co-Founder and Chief Scientist Resigns. William N. Joy, chief scientist of Sun Microsystems, is leaving the company he helped found 21 years ago. via [New York Times: Business]
9:16:22 AM  #  

Argentina Defaults on $3 Billion I.M.F. Debt. Argentina defaulted on a $3 billion loan payment to the fund rather than dipping into its scant foreign reserves to pay the debt. via [New York Times: Business]
9:14:24 AM  #