Blockbuster grew into a monster when VCR ownership went from near zero in 1981 to over 70% of households owning one or more, by 1992. Sears may have crashed, but All State is still pumping out dividends thirty years later, as is Discover Inc.īlockbuster wasa perfect example of the investment cycle. Sears investors received pieces of All-State, Dean Witter and the company behind Discover Card. Car Max thrived long after Circuit City crashed. Investors in Circuit City received stock in a spin-off known as Car Max. People who don't follow stocks often don't realize the residual effects of ownership. I sold it, along with much of my portfolio in the mid 1990s. I first bought it in 1965,with my first Communion money, and reinvested the dividends each quarter so by the time I'd finished college, it had grown substantially. Speaking only for myself, Sears was a great investment. Like Blockbuster, Sears, Circuit City, etc. If I bought then and if I sold then, I would have made moneyįor instance, if I bought Enron stock in Jan-99 and sold in Jan-01 I’d have made a 200% profit.īut if I waited a bit longer and sold in Dec-01 then it would be a 100% lossĪ solid investment should make money no matter when you bought …if you hold it long enough. Most investments can be classified as profitable if you look at a historical graph and say :
