Published on 21 Apr 2021 on Simply Wall St. via Yahoo Finance
If you want to compound wealth in the stock market, you can do so by buying an index fund. But if you pick the right individual stocks, you could make more than that. To wit, the Marlin Business Services Corp. (NASDAQ:MRLN) share price is 91% higher than it was a year ago, much better than the market return of around 54% (not including dividends) in the same period. That's a solid performance by our standards! Unfortunately the longer term returns are not so good, with the stock falling 50% in the last three years.
See our latest analysis for Marlin Business Services
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.