What does this chart show?
Crocs, the plastic shoe company, has outperformed the S&P 500 over the past 20 years since it became a public company.
Why does it matter?
Despite facing a 98% drawdown in 2009 and two other drawdowns >75%, Crocs has grown its revenue 300x over the last two decades, a 34% annual growth rate - faster than Nvidia, Alphabet, and Amazon1. The business currently trades at 6x earnings2.
The Bottom Line
Outperformance is tracking error.