Comments on: Utilities vs banks: The evidence

By: Joel Dimmock

Joel Dimmock — Thu, 13 Jan 2011 08:53:26 +0000

No.. well maybe. I’d have to check.
But I think we we’re offering some evidence on the issues Patel raised without endorsing them — we posted the chart to allow readers to draw their own conclusions. He probably does have a point about value creation vs pay, but his point about utilities CEOs making better bankers is clearly more provocative than practical. That said, it would be kinda fun to see what Bob Diamond would do with BG Group…

By: mhdavis

mhdavis — Wed, 12 Jan 2011 16:34:01 +0000

So from 1995 until 2006 Banks out preformed Utilities.
That’s 11 years.
From 2007 till 2010 Utilities outperformed Banks.
That’s 4 years.
From 1987 to 1996 they appear from your graph to have performed the same
That’s 9 Years.
So over 20 years Utilities have performed better for 20 percent of the time.
That leaves 80 percent that they didn’t
Did you write a similar article around 2001 or 2002 showing that Utilities underperformed.