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Investing in BM GreenTech Berhad (KLSE:BMGREEN) five years ago would have delivered you a 98% gain

Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the market average. Buying under-rated businesses is one path to excess returns. To wit, the BM GreenTech Berhad share price has climbed 76% in five years, easily topping the market return of 1.0% (ignoring dividends). On the other hand, the more recent gains haven’t been so impressive, with shareholders gaining just 38% , including dividends .

Let’s take a look at the underlying fundamentals over the longer term, and see if they’ve been consistent with shareholders returns.

See our latest analysis for BM GreenTech Berhad

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare…

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