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 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.
In order to justify the effort of selecting individual stocks, it’s worth striving to beat the returns from a market index fund. But the main game is to find enough winners to more than offset the losers So we wouldn’t blame long term Balanced Commercial Property Trust Ltd (LON:BCPT) shareholders for doubting their decision to
For many, the main point of investing is to generate higher returns than the overall market. But the main game is to find enough winners to more than offset the losers So we wouldn’t blame long term AMP Limited (ASX:AMP) shareholders for doubting their decision to hold, with the stock down 37% over a half
The simplest way to invest in stocks is to buy exchange traded funds. But investors can boost returns by picking market-beating companies to own shares in. For example, the Mitrajaya Holdings Berhad (KLSE:MITRA) share price is up 27% in the last 1 year, clearly besting the market return of around 20% (not including dividends). That’s
It is a pleasure to report that the Larvotto Resources Limited (ASX:LRV) is up 42% in the last quarter. But that is minimal compensation for the share price under-performance over the last year. In fact, the price has declined 27% in a year, falling short of the returns you could get by investing in an
When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right stock, you can make a lot more than 100%. For example, the Sime Darby Property Berhad (KLSE:SIMEPROP) share price has soared 203% return in just a single year. Also pleasing for
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 MA Financial Group Limited (ASX:MAF) shareholders have enjoyed a 28% share price rise over the last half decade, well in excess of the market return of around 16% (not
Passive investing in index funds can generate returns that roughly match the overall market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). To wit, the Bakkavor Group plc (LON:BAKK) share price is 42% higher than it was a year ago, much better than the
When we invest, we’re generally looking for stocks that outperform the market average. And while active stock picking involves risks (and requires diversification) it can also provide excess returns. For example, long term Siemens Aktiengesellschaft (ETR:SIE) shareholders have enjoyed a 65% share price rise over the last half decade, well in excess of the market