As every investor would know, you don’t hit a homerun every time you swing. But it’s not unreasonable to try to avoid truly shocking capital losses. So we hope that those who held ImpediMed Limited (ASX:IPD) during the last year don’t lose the lesson, in addition to the 74% hit to the value of their
When you buy and hold a stock for the long term, you definitely want it to provide a positive return. Furthermore, you’d generally like to see the share price rise faster than the market. But WD-40 Company (NASDAQ:WDFC) has fallen short of that second goal, with a share price rise of 38% over five years,
The simplest way to benefit from a rising market is to buy an index fund. Active investors aim to buy stocks that vastly outperform the market – but in the process, they risk under-performance. Unfortunately the Metis Energy Limited (SGX:L02) share price slid 48% over twelve months. That’s well below the market return of 8.1%.
When we invest, we’re generally looking for stocks that outperform the market average. Buying under-rated businesses is one path to excess returns. For example, long term Ainsworth Game Technology Limited (ASX:AGI) shareholders have enjoyed a 32% share price rise over the last half decade, well in excess of the market return of around 21% (not
The main point of investing for the long term is to make money. But more than that, you probably want to see it rise more than the market average. Unfortunately for shareholders, while the Bank of America Corporation (NYSE:BAC) share price is up 46% in the last five years, that’s less than the market return.