Does “Buy and Hold” Really Work?

Sometimes we forget just how poorly some large, well established companies can be managed. This list reminds us that a “buy and hold” strategy is unwise. There is no substitute for careful selection and continual reevaluation of your investments.

The Fifty Worst-Performing Non-Technology S&P 500 Stocks, 1995-2004

 

CompanyIndustry%DeclineTime Period
1POLAROID CORPPhotographic Products-99.9801997-2002
2WORLDCOM INC-WORLDCOM GROUPIntegrated Telecommunication Services-99.9721998-2003
3BETHLEHEM STEEL CORPMetals & Mining-99.9621999-2004
4FRUIT OF THE LOOM LTD -CL AApparel, Accessories & Luxury Goods-99.9181997-2002
5CONSECO INCLife & Health Insurance-99.9141997-2002
6ENRON CORPGas Utilities-99.9021998-2003
7LAIDLAW INTERNATIONAL INCDiversified Commercial Services-99.8531997-2002
8JOY GLOBAL INCIndustrial Machinery-99.8201995-2000
9US AIRWAYS GROUP INCAirlines-99.6081997-2002
10ARMSTRONG HOLDINGS INCBuilding Products-99.5051997-2002
11KMART HOLDING CORPMulti-line Retail-99.1891999-2004
12TENNECO AUTOMOTIVE INCAuto Parts & Equipment-99.0961996-2001
13OWENS CORNINGBuilding Products-98.8151998-2003
14GRACE (WR)& COSpecialty Chemicals-97.5631997-2002
15ECHO BAY MINES LTDGold-96.3411995-2000
16SHONEY�S INCRestaurants-96.1431996-2001
17FOSTER WHEELER LTDConstruction & Engineering-95.7141997-2002
18CROWN HOLDINGS INCMetal & Glass Containers-95.3291996-2001
19IKON OFFICE SOLUTIONSOffice Services & Supplies-94.5211995-2000
20QWEST COMMUNICATION INTL INCDiversified Telecommunication Services-93.8331999-2004
21AT&T CORPDiversified Telecommunication Services-92.4981999-2004
22SERVICE CORP INTERNATIONALHealth Care Facilities-92.0451995-2000
23RITE AID CORPDrug Retail-91.6601997-2002
24WILLIAMS COS INCGas Utilities-90.5261997-2002
25AMRCORP/DEAirlines-89.7281997-2002
26GOODYEAR TIRE & RUBBER COTires & Rubber-89.2971997-2002
27KANSAS CITY SOUTHERNRoad & Rail-88.1211999-2004
28MCDERMOTT INTL INCConstruction & Engineering-88.0411997-2002
29ALLEGHENY TECHNOLOGIES INCSteel-87.9611997-2002
30PEP BOYS-MANNY MOE & JACKSpecialty Stores-85.8541995-2000
31DELTA AIR LINES INCAirlines-84.9841999-2004
32HEALTHSOUTH CORPHealth Care Facilities-84.8651997-2002
33MOORE WALLACE INC OfficeServices & Supplies-83.6671995-2000
34HERCULES INCSpecialty Chemicals-82.4221997-2002
35FLEETWOOD ENTERPRISESHomebuilding-81.5021997-2002
36SPRINT PCS GROUPWireless Telecommunication Services-81.3461999-2004
37WINN-DIXIE STORES INCFood & Staples Retailing-80.9921999-2004
38DUN & BRADSTREET CORPPublishing-80.0191995-2000
39XEROX CORP OfficeServices & Supplies-79.7451995-2000
40MILACRON INCIndustrial Machinery-78.3381998-2003
41PENNEY (JC) CODepartment Stores-77.1651995-2000
42INTERPUBLIC GROUP OF COSMedia-76.7711999-2004
43DANA CORPAuto Parts & Equipment-75.2421997-2002
44BATTLE MTN GOLD COGold-74.5451996-2001
45TIME WARNER INCMedia-74.3661999-2004
46PENNZENERGY COIntegrated Oil & Gas-73.8071997-2002
47EL PASO CORPOil & Gas-73.2051999-2004
48LUBYS INCRestaurants-73.0341995-2000
49UNUMPROVIDENT CORPLife & Health Insurance-72.9851998-2003
50HOMESTAKE MININGGold-72.9841995-2000

Data Source: Standard & Poor�s