Take the long view on Sony

Article Excerpt

Today, all too many investors try to take investment cues from short-term developments like quarterly earning reports, the timing of new product releases and so on. However, no one can consistently predict these short-term factors. That’s why you’re far better off to base investment decisions on trends and developments that last for years if not decades. That’s especially true with a stock like Sony, which has been out of favor with investors since the 1990s and now trades below its 1997 peak. Though its earnings were irregular and it made some bad business decisions, Sony built up a great deal of hidden value in that time. It now seems set for far better results in the next seven years. SONY CORP. $47 (New York symbol SNE; WSSF Rating: Above average) is one of the world’s largest makers of consumer electronic products such as TV sets, DVD players and stereo equipment. This business supplies two-thirds of its revenues. The remaining third comes from its…

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