Absolutely on point mate, I remember reading Moneyball by Michael Lewis and it always rings true to this day. As human beings, we're naturally wired to evaluate things inaccurately. He said in Baseball, a scout might find the best combination of a player; he might have all the looks, the skills, the personality but when it really comes down to the Big-Leagues, the player might not just pan out and we're left wondering what went wrong. And then the obvious notion sets in of the flight and fight mode of human nature to make sense of events and go "Oh Yeah ofcourse we didn't see that coming".
The stock market is, a bit, if not exactly like Baseball - we might have a great product, a great team of management, a great financial position but all it really boils down to is human instinct.
It never ceases to amaze me how certain companies just fly off the radar and some plummet like wild fire.
The only way to negate that process is to have a strong stomach and be willing to stick with the stock for atleast 5-10 years. As long as there's no underlying issues within the company, it's pretty much just a waiting game on when the market gets a wind of true value within a company.
Regards,
NT.
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