Wednesday, January 10, 2007

Oldies but Goodies: How Old Companies Outperformed

Recently, I published an article on water utility stocks, almost half of which were over a century old. Some investors consider old companies as stodgy and has-been's. However, if you look at the performance of five of the oldest publicly traded companies for last year, you would find otherwise. The average return for the 'old five' was 13%, beating the NASDAQ and the S&P 500 for 2006.
The oldest company on the list is Bowne & Co. (BNE), the financial printing company founded in 1775, which had a return of 9% for the year. The best of the oldies is Bank of New York Company, Inc. (BK) founded 1784, up 24%. Here is the list:

Bowne & Co. Inc. (BNE) 9% Founded 1775
Bank of New York Company (BK) 24% Founded 1784
Washington Trust Bancorp (WASH) 11% Founded 1800
Valspar Corp. (VAL) 12% Founded 1806
York Water Company (YORW) 8% Founded 1816

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