Why are some stocks performing better in long run than others? Do you have stocks in your portfolio that are strongly outperforming the rest or even beat the STI?
Photo: just Usain Bolt outperforming other competitors with little effort.
We do too, and after some research, we’ve discovered 2 important points:
In the short term, market in moves because of emotions In the long term, prices moves because of how much money the company makes
Companies with high returns can retain some for growth while paying dividends. Those that do this for a long time achieving amazing results in the long run through compounding.
But taking a step back in order to move a step further, we have to go back to the very crucial part of analysing the business, particularly the competitive advantages of the company’s business model.
Because this is the key for companies to produce amazing …