simoan wrote:Well, yes, but it's not even my best performing compounder. I have several others. What about Apple at $15.50 in March 2013? Games Workshop? Diploma? All now on roughly the same rating as when I first bought them despite multi-bagging. All the worst investing mistakes I have made is by selling long term compounders too early based on some strange idea of them being overvalued. Some companies always look overvalued and they are often the best ones to hold for the longer term as they keep on compounding.
All the best, Si
Value investing can work, too. It just happens to be out of fashion recently because what are perceived as growthy investments do well when there is plenty of stimulus. The last couple of years have seen more stimulus in the US than at any time in history.
A great example of value investing was about 10 - 15 years ago, AstraZeneca could be bought for £20 - £30 on a P/E in the mid-single-digits, net cash position, with a high-single-digit dividend yield, and where even if they never developed a new drug again an investor could expect existing drugs to pay back the value of the shares before their patents expired.
Since then, Astra's profits haven't (yet) soared but the shares have re-rated to £83 currently (flirted with £100 last year) and they paid a good dividend along the way while telling Pfizer to go do one when approached for a takeover.
