These days it’s easy to simply buy an index fund, and your returns should (roughly) match the market. But you can significantly boost your returns by picking above-average stocks. To wit, the DCC plc (LON:DCC) share price is 22% higher than it was a year ago, much better than the market return of around 7.4% (not including dividends) in the same period. That’s a solid performance by our standards! On the other hand, longer term shareholders have had a tougher run, with the stock falling 6.8% in three years.
With that in mind, it’s worth seeing if the company’s underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.
See our latest analysis for DCC
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it’s a weighing machine. One imperfect but simple way to consider how the market…
