Published on 21 Apr 2024 on Simply Wall St. via Yahoo Finance
Those who invested in Wesfarmers (ASX:WES) five years ago are up 124%
Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the market average. And the truth is, you can make significant gains if you buy good quality businesses at the right price. For example, the Wesfarmers Limited (ASX:WES) share price is up 81% in the last 5 years, clearly besting the market return of around 19% (ignoring dividends). On the other hand, the more recent gains haven't been so impressive, with shareholders gaining just 30% , including dividends .
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.