The most you can lose on any stock (assuming you don’t use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. One great example is Parker-Hannifin Corporation (NYSE:PH) which saw its share price drive 276% higher over five years. On top of that, the share price is up 13% in about a quarter. But this could be related to the strong market, which is up 10% in the last three months.
Now it’s worth having a look at the company’s fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business.
There is no denying that markets are sometimes efficient, but prices do not…
