Long term investing can be life changing when you buy and hold the truly great businesses. And we’ve seen some truly amazing gains over the years. Don’t believe it? Then look at the Advantage Energy Ltd. (TSE:AAV) share price. It’s 336% higher than it was five years ago. And this is just one example of the epic gains achieved by some long term investors. On top of that, the share price is up 14% in about a quarter. But this move may well have been assisted by the reasonably buoyant market (up 6.3% in 90 days).
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.
Check out our latest analysis for Advantage Energy
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how…
