Big Companies that were not too big to fail
There have been many well-known public companies that have experienced spectacular downfalls in the past. Some examples include:
- Enron: Enron was an energy company that was once considered one of the most innovative and successful companies in the world. However, in 2001, it was revealed that the company had been engaged in widespread accounting fraud, and its stock price plummeted, leading to the company’s bankruptcy and the loss of thousands of jobs.
- Lehman Brothers: Lehman Brothers was a global investment bank that was a major player in the subprime mortgage market leading up to the financial crisis of 2007-2008. When the housing market collapsed, Lehman Brothers was unable to meet its financial obligations and filed for bankruptcy, leading to widespread financial turmoil and the loss of thousands of jobs.
- Kodak: Kodak was once a dominant player in the photography industry, but it struggled to adapt to the digital age and eventually filed for bankruptcy in 2012.
- Sears: Sears was once the largest retailer in the United States, but it was unable to compete with newer, more agile competitors and filed for bankruptcy in 2018.
There are many factors that can contribute to the downfall of a public company, including poor management, financial mismanagement, changing market conditions, and competition from newer, more innovative companies. It is important for investors to be aware of these risks and to do thorough research and due diligence before investing in any specific security.
