In July 2024, Boeing entered a guilty plea to criminal fraud conspiracy related to the 737 MAX crashes that killed 346 people.
Boeing appears in virtually every S&P 500 index fund. If you have a retirement account with passive equity exposure in the US, you almost certainly own it.
The Full Scorecard
Average: -25. One positive, four neutral values, and six negatives.
The Criminal Record
The -60 on Honest & Fair Business understates what happened. Boeing admitted to deceiving the Federal Aviation Administration about the MCAS flight control system on the 737 MAX. Two crashes -- Lion Air Flight 610 and Ethiopian Airlines Flight 302 -- killed everyone on board.
The Department of Justice initially deferred prosecution in 2021. When Boeing violated the terms of that agreement, the DOJ brought criminal charges. Boeing pled guilty to conspiracy to defraud the United States.
The Weapons Score
The -80 on No War, No Weapons reflects Boeing's position as the world's second-largest defence contractor. Boeing manufactures fighter jets, missiles, drones, and military satellites. Defence revenue exceeded $23 billion in recent years.
The Retirement Fund Problem
Most retirement savers do not choose individual stocks. They choose funds -- and those funds choose Boeing. An S&P 500 tracker allocates your money to Boeing automatically.
The average retirement account holder has no idea that their savings help fund a company that pled guilty to criminal fraud. The question is not whether Boeing is a good investment. The question is whether it belongs in a fund you did not actively choose.
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