There – just as the Teresa May told us – there is nothing like the magic money tree. but Rolls Royce (LSE: RR) has been a good alternative to investors over the past ten years.

The stock rises 165 %, which is enough to convert 1,000 pounds to 2,644 pounds. Saying that the path was rugged with cheapness, but there is an important lesson here for investors.

Lower … then arrive

Most investors know that Rolls-Royce is a very periodic work. The demand for air travel is not the same every year, as the company’s revenues and profits fluctuate.

Covid-19, however, the dramatic extent of these transformations showed. Any business can have unusually low sales in a specific year. But the effect of the epidemic was much larger than this.

The company’s long -term debts have multiplied and its shares have increased by more than 50 %. As a result, the share price decreased by 88 %.

These are real issues, so investors were not fully reasonable in thinking about selling shares. But for those who did not do it, the returns were more worthy of this.

Steadfastness

The periodic nature of Rolls -Royce works can be risk. But it is not an accident that the price of the share and the company of each company is strong since the end of the epidemic.

While the total economic situation can be troubled, the company has some important competitive strengths. This is what comes in the foreground over time.

The most important of them are the high barriers in front of the income related to space and defense industries. These make it very difficult for new competitors and create the power of Rolls-Royce.

This means that the company always has a long -term opportunity. As long as the company remains standing on its feet and ultimately recovering, there is a strong possibility that can do well in a recovery.

Investment lessons

One of the lessons that must be taken from the performance of Rolls-Royce shares over the past ten years is that greed when others fear can pay it significantly. But there is something else to be noticed as well.

A decade ago, Covid-19 was not even on the horizon. If investors are able to see the future and disrupt the demand for travel, they may think twice to buy shares.

Nevertheless, things have succeeded very well for anyone who bought stocks in 2015. This is a good example of one of the most important principles for investors.

In the long run, finding exceptional work issues is more than just precise expectations for the macroeconomic economy. I think Rolls-Royce shares over the past ten years have been a clear demonstration of this.

Still buy?

The shares have increased more than 600 % in the past five years. And other equal things, it is clear that it is better to buy an arrow at a price lower than above.

However, the long -term strengths of the company still look sound for me. So I think that the lesson of the past ten years must be that it is still worth considering by investors.