We think all investors should try to buy and hold high quality multi-year winners. And highest quality companies can see their share prices grow by huge amounts. To wit, the eDreams ODIGEO S.A. (BME:EDR) share price has soared 322% over five years. And this is just one example of the epic gains achieved by some long term investors. It’s down 6.9% in the last seven days.
Although eDreams ODIGEO has shed €67m from its market cap this week, let’s take a look at its longer term fundamental trends and see if they’ve driven returns.
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. One way to examine how market sentiment has changed over time is to look at the interaction between a company’s share price and its earnings per share (EPS).
During the last…



























