Industry performance in 1-year and 5-year time frames
From the Morningstar Database of Industry Sector
Performance, http://news.morningstar.com/stockReturns/CapWtdIndustryReturns.html,
examine the financial performance of various industries over 1 year and 5 year
timeframes. Pick one industry that has achieved an excess of 10% return to
shareholders in both time frames. Then pick one industry that has had a
negative return to shareholders in both time frames.
Questions:
1. What kinds of industries tend to be better performers in
the medium to long term? Why? What kinds of industries tend to do poorly in the
medium to long term? Why?
2. Can you make the claim that some industries are
inherently more profitable than others? Provide arguments and examples to
justify your response.
