Just a bit of history for you as you're pretty new here. RYM have dramatically underperformed the market and the sector for more than 5 years now, with their shares up just 12% against the NZX50 up 75%. They've actually underperformed for longer than that. Way back in early 2014 when they were about $8.75 both Winner and I made the call that they didn't warrant their PE and that growth wasn't sufficient to warrant such an expensive valuation. We both made that point very emphatically, and its a matter of public record in the RYM thread. At the time RYM were the biggest market darling on the NZX. We made the case that the very expensive valuation could lead to many years of market underperformance. There were many howls of protest from emotionally attached investors back then just as there are now with the current crop of market darlings which according to some you cannot lose if you hold long term.
While its true that RYM shareholders have not lost per se over the ensuing 8 years, they have certainly suffered a woeful underperformance compared to the NZX50 and accordingly this serves as a great case study for what we're talking about now. Interestingly, I still think RYM are heavily overpriced relative to the sector and in my opinion are highly likely to underperform for several more years so anyone thinking if you hold for a full decade it must come right, may be skating on very thin ice.
Another great case study is the ATM fiasco. The 3 B's (Beagle Bull and Balance) all took on the case that ATM, (another former very sexy market darling that heaps of people thought you couldn't lose on), was vastly overvalued at $20+...those that listened in both the above case's should be very pleased some on here were posting their non biased objective viewpoints.
Of course with the current market darlings...those who have enjoyed fabulous returns will tell you this time its different. We'll see. I am definitely deeply skeptical because history never repeats, right ;)...and these companies haven't enjoyed super unusually strong tailwinds from Covid, YEAH RIGHT, I know its early but can I please have a Tui to go with that ?