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By buying an index fund, investors can approximate the average market return. But if you buy good businesses at attractive prices, your portfolio returns could exceed the average market return. For example, the DEAG Deutsche Entertainment Aktiengesellschaft () share price is up 57% in the last three years, clearly besting the market return of around 7.5% (not including dividends). However, more recent returns haven’t been as impressive as that, with the stock returning just 42% in the last year.

Given that DEAG Deutsche Entertainment didn’t make a profit in the last twelve months, we’ll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to

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