Why Laurent-Perrier could be a good buy

The market is overlooking Laurent-Perrier’s status as a top Champagne producer.

Champagne bottle with glass
(Image credit: Getty Images)

Research shows that illiquid stocks tend to perform better over the long term. This is particularly true for companies with a large main shareholder or group of associate shareholders, such as a wealthy family. There are two reasons why this tends to be the case.

Firstly, shareholders who own a large proportion of a firm tend to have a longer-term outlook than individual shareholders, and they are less likely to dump and run when the company misses its quarterly numbers. It’s also far harder to find a buyer for large blocks of stock. It is not a straightforward case of an ordinary investor selling a few thousand shares.

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.