James M. Meyer on change and the need for investors to adapt

As investors, you can’t afford to fall in love with everything you own.  While taxes may lock you in, staying with an old favorite in decline will cost you more money in the end.  In 1980, the top 10 of the Fortune 500 were (in order) Exxon, General Motors, Mobil, Ford, Texaco, Gulf Oil, IBM, GE, and Amoco.  Four have been swallowed, General Motors went bankrupt before recovering, and GE has been a well documented mess.  If I moved forward to 2000, the most notable addition would have been Walmart.  The only tech name was still IBM.  If I moved forward to 2020, the only name on all three lists is ExxonMobil.  You get the message.  Times change and investors need to change as well.  But pioneers and dreamers rarely rise to the top.  That’s what makes investing challenging.

~ James M. Meyer, Tower Bridge Advisors Market Commentary, April 21, 2021