Lou Gerstner wrote, "People truly do what you inspect, not what you expect." … Lest we forget, "inspection pages" such as these exist because chief executives are "people" too.
Arvind Krishna: 2020 through 2025 Shareholder Returns
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Date Published: April 11, 2022
Date Modified: April 2, 2026 |
Evaluating Arvind Krishna's IBM Shareholder Returns from 2020 through 2025
- IBM's 2020 through 2025 Shareholder Returns Under Arvind Krishna
- IBM's 2011 through 2025 Shareholder Returns Under Krishna and Rometty
- IBM's 1999 through 2025 Shareholder Returns Under Krishna, Rometty, Palmisano and Gerstner
- Evaluating IBM's 2020 through 2025 Shareholder Returns under Arvind Krishna
- IBM's Shareholder Returns from 2020 to 2025: Compound Annual Growth Rate (CAGR)
- A $1,000 investment in IBM over the six years (2019 to 2025) yielded a 19.57% CAGR.
- A similar investment in a Dow Jones Technology Stock Index fund yielded a 25.08% CAGR.
- A similar investment in a Large Company Index fund yielded a 15.08% CAGR.
- A similar investment in the Dow Jones Industrial Average yielded a 11.27% CAGR.
What were Arvind Krishna's five-year shareholder total returns from 2020 to 2025—including dividends? IBM stock—including dividends—was up 19.57% over the six-years while the Dow Jones Technology Stock Index was up 25.08%. IBM's stock did manage to outperform an investment in a large company stock index fund that returned 15.08% and a similar investment in the Dow Jones Industrial Average that returned 11.27%.
Stock investors could have received higher returns with less risk in a Dow Jones Technology stock indexed mutual fund.
Stock investors could have received higher returns with less risk in a Dow Jones Technology stock indexed mutual fund.
This comparison of the returns for IBM and these three index funds from 2019 through 2025 is graphically presented in the following line chart.
- Evaluating IBM's 2011 through 2025 Shareholder Returns under Krishna and Rometty
- IBM Shareholder Returns from 2011 through 2025: Compound Annual Growth Rate
- A $1,000 investment in IBM over fourteen years (2011 to 2025) yielded a 7.59% CAGR
- A similar investment in a Large Company Index fund yielded a 14.97% CAGR
- A similar investment in the Dow Jones Industrial Average yielded a 12.80% CAGR
An investment of $1,000 in IBM in 2011 would have underperformed a similar investment with less risk in Large Company Stocks or the Dow Jones Industrial Average. This comparison of the returns for IBM and these two index funds from 2011 through 2025 is graphically presented in the following line chart.
- Evaluating IBM's 1999 through 2025 Shareholder Returns under Krishna, Rometty, Palmisano and Gerstner
- IBM Shareholder Returns from 1999 through 2025: Compound Annual Growth Rate
- A $1,000 investment in IBM over twenty-seven years (1999 to 2025) yielded a 7.14% CAGR
- A similar investment in the Dow Jones Industrial average yielded a 8.76% CAGR
- A similar investment in a Large Company Index fund yielded a 8.53% CAGR
Generally speaking, in the first decade of the 21st Century IBM underperformed index funds but at least achieved positive returns until Virginia (Ginni) M. Rometty took charge in 2012, then IBM stock consistently underperformed lower-risk, index investments such as Large Company Stocks and the Dow Jones Industrial Average which rose as IBM turned downward under Arvind Krishna.
Unfortunately, over this long-term an investment of $1,000 in most any index fund would have outperformed the IBM returns because of the poor start from 1999 through 2019. A comparison of the returns for IBM and two index funds from 1999 through 2025 is graphically presented in the following line chart.
