The U.S. Government Accountability Office recently found that sustainment costs for the F-35 “keep increasing — from $1.1 trillion in 2018 to $1.58 trillion in 2023.” But the Pentagon intends to fly the jet “less than originally estimated, partly because of reliability issues.” (“The F-35’s ability to perform its mission has also trended downward over the past 5 years.”)
Reminded me of an investment-advice column I wrote nine years ago.
Well, no. I am not a certified financial planner. But investing in “defense” contractors is wise. No matter how much they screw up, the revenue sluices are always open.
Enjoy?
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Some investment advice, from a columnist whose expertise is public policy, not — repeat, not — financial planning: Put your money in “national security.”
With the release of Raytheon’s 2014 annual report, America’s major “defense” contractors have each disclosed how they fared last year. The news was uniformly sunny. Lockheed Martin’s net earnings were $3.61 billion, up from $2.98 billion. Boeing “delivered 52 percent more military aircraft and satellites in 2014 than in 2010,” which helped the corporation hike net earnings from $4.59 billion to $5.45 billion. General Dynamics had “a very good year,” its chairman and CEO boasted, with “operating earnings, margins, free cash flow, earnings from continuing operations and earnings per share … the highest in the company’s history.”
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