Investors Who Bought Wei Chih Steel IndustrialLtd (TPE:2028) Shares Five Years Ago Are Now Up 727%

Long term investing can be life changing when you buy and hold the truly great businesses. And we've seen some truly amazing gains over the years. Just think about the savvy investors who held Wei Chih Steel Industrial Co.,Ltd. (TPE:2028) shares for the last five years, while they gained 727%. This just goes to show the value creation that some businesses can achieve. On top of that, the share price is up 118% in about a quarter.

We love happy stories like this one. The company should be really proud of that performance!

See our latest analysis for Wei Chih Steel IndustrialLtd

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the last half decade, Wei Chih Steel IndustrialLtd became profitable. Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

It might be well worthwhile taking a look at our free report on Wei Chih Steel IndustrialLtd's earnings, revenue and cash flow.

A Different Perspective

It's good to see that Wei Chih Steel IndustrialLtd has rewarded shareholders with a total shareholder return of 134% in the last twelve months. That gain is better than the annual TSR over five years, which is 53%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Wei Chih Steel IndustrialLtd better, we need to consider many other factors. Even so, be aware that Wei Chih Steel IndustrialLtd is showing 3 warning signs in our investment analysis , you should know about...

We will like Wei Chih Steel IndustrialLtd better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on TW exchanges.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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