Published on 6 Oct 2023 on Simply Wall St. via Yahoo Finance
Investing in Wesfarmers (ASX:WES) a year ago would have delivered you a 21% gain
Passive investing in index funds can generate returns that roughly match the overall market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). To wit, the Wesfarmers Limited (ASX:WES) share price is 17% higher than it was a year ago, much better than the market return of around 0.1% (not including dividends) in the same period. So that should have shareholders smiling. The longer term returns have not been as good, with the stock price only 12% higher than it was three years ago.
Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.
Check out our latest analysis for Wesfarmers