Past performance is not an indicator or future performance; however, it does shows the robustness and dynamics of a company.
Pfizer shares increased 2.1% percent today. Greedy investors may quickly conclude that it will increase in the future too. Wait, let's look at the past performance.
Here, I try to understand the stock price variation of Pfizer over 10 years. It is really a long duration to judge the robustness of the company. Interestingly, over the last 10 years from 02.03.2001 until 28.02.2011, Pfizer share prices dropped -57.07%. Strikingly, after 2003, S&P 500 is no more an indication of Pfizer share value (Check the graph below). Few investors may argue that Pfizer share value has gone up during the last one year. But check the S&P 500 graph during the last one year, the rate of change in share value is far better than Pfizer.
If you are long term investor, look for some other pharma than Pfizer.
Plot of Pfizer and S&P 500 share variation over last 10 years
Pfizer shares increased 2.1% percent today. Greedy investors may quickly conclude that it will increase in the future too. Wait, let's look at the past performance.
Here, I try to understand the stock price variation of Pfizer over 10 years. It is really a long duration to judge the robustness of the company. Interestingly, over the last 10 years from 02.03.2001 until 28.02.2011, Pfizer share prices dropped -57.07%. Strikingly, after 2003, S&P 500 is no more an indication of Pfizer share value (Check the graph below). Few investors may argue that Pfizer share value has gone up during the last one year. But check the S&P 500 graph during the last one year, the rate of change in share value is far better than Pfizer.
If you are long term investor, look for some other pharma than Pfizer.
Plot of Pfizer and S&P 500 share variation over last 10 years
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| Red: S&P 500, Blue: Pfizer |
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