Since 2011, Lockheed Martin has been compounding at a rate of 30% per year. It has beaten the S&P 500 by over fifteen points annually over that time frame. It is one of my greatest personal investment acts of omission to ignore it when it caught my attention in the $80s as it now trades around $240 per share for a solid tripling in the course of five years (plus the dividend got jacked up.) The reason why the stock prices of Lockheed and other defense manufacturers got so low in 2011 is that there was a strong political dialogue in the United States calling for the curtailment of aerospace and weaponry defense spending.
The defense sector as a whole traded at its lowest valuation since 1991, and investors that scooped up shares in Lockheed Martin and some other defense firms ended up generating some of the best five-year total … Read the rest of this article!