William D. Cohan on the Rise and Fall of GE
Masters in Business
00:00
Jack Welch's Power Failure
The vast majority of the gain we've seen in Apple has been an increase in revenues and profits with a modest, very modest uptick in PE multiple. When we look at GE from 82 to 2000 under the Jack Welch reign, it began priced as a stodgy industrial. He left this giant ticking time bomb of a 47 PE on an industrial with a cratering capital business that had a ticking timebomb of an accounting fraud.
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