Mohacsy's Safe Portfolio Member Forum

[Elroy Jetson]

Putting all of your savings into one company or one industry carries a huge risk.

It would have been terrific if he had been the CFO for a Google subsidiary, but as a CFO for the stellar subsidiary of stodgy old Weyerhaeuser the results were worse than horrible.

Everyone felt our clever home building business was owned by a financial black hole in Tacoma, Washington.

As you can see from this chart since 1978 it's still a disgusting "investment" providing a 1.7% annual return over 40 year - a 50% loss of capital after accounting for inflation.

The dividend currently adds a 3.6% annual yield, but historically it's been closer to a 0.4% yield. Just enough to provide an adequate income for the Weyerhaeuser family.

https://www.google.com/search?q=weyerhaeuser+stock&ie=utf-8&oe=utf-8&client=firefox-b

On the other hand senior employees of the Weyerhaeuser home building subsidiary Pardee Construction made out quite well as small limited partners in many of Pardee's apartment properties which were typically later sold-off as condominiums during down years when home sales were slow. The employee portion which required risk exposure to a loan but no up-front cash investment was usually sold last when prices were higher. I'm sure his share of the apartment partnerships was worth well more than one million.