takeover / partner, page-43

Yep, it can take time for the market to wake up. Multiple years is not uncommon. Investor greats like Lynch and Buffet acknowledge at times that the price of stock went down some up to 80% after they have purchased, but after years, sometimes up to 5 years the stock price eclipsed their purchase price, and continues on the upward trajectory. Some of these investments went on to produce 50 to over 100 bags.

It just goes to show that in the short term (<3-5 yrs) the market can be quite irrational, and it is these irrational moments that allow one to buy undervalued business which deliver great returns in time. But in the long term, the stock price will always come back in line with fundamental value of the business.