Over the next couple of weeks, we are going to take a look at some of the big winners during the early days of the pandemic — how much of a windfall, how the companies spent the sudden surge in profits and cash flows, their share price performance since then and how they are doing today, and their outlook in the post-pandemic years.
The Covid-19 pandemic was without question one of the most disruptive events in recent history, due to the geographical scale of its impact and the fact that practically everyone was flying blind.
There was no precedent from our lifetime. No one knew how bad things would get or for how long. The sudden enforced changes to people’s lifestyles also brought about unexpected consequences. Businesses scrambled to respond to all the resulting uncertainties. Some saw massive windfall profits as demand for their products surged to historic highs while others struggled to meet demand amid severe supply shortages, due to production disruptions and logistic snarls. Yet others had to grapple with cliff-like plunges in sales practically overnight. Testing times. Also times when the investor could best assess the capability, integrity and fortitude of management and controlling share holders, people who would ultimately drive shareholder value in the long run.
