No matter what you invest in, discipline and patience are key attributes to success. They are critical to us as we seek to buy companies that we believe to be undervalued. The first benefit of buying undervalued stocks is these investments should produce terrific returns over the long run.
This year’s stock market has continued where it left off last year and the year before that and the five years before that… straight up (with a minor correction here and there). This year’s version has registered an 8% return (as measured by the S&P 500 Index) as of June 30th. That’s right, for seven plus years the stock market has finished with a positive return.