Were Diamond Companies Worth the Investment?

(diamonds.net) - What parameters would one use to assess a company’s performance? For our analysis, sales provide the best indication of how a business is doing. Taking that a step further, revenue generated across a group of companies within a sector provides valuable insight into the market’s performance. Investors in stocks consider many more factors. Expectations for the company — and for the equity markets as a whole — largely influence whether they will buy or sell. They certainly did not base their trading decisions on short-term revenue performances in 2020, when demand fell across all segments of the diamond and jewelry industry yet share prices rose. The Rapaport Diamond Jewelry (RDJ) index, a theoretical stock list comprising the industry’s top 10 public companies by revenue, gained 11.5% during the year. It outperformed the Dow Jones Industrial Average, despite weakness in the individual companies’ sales.