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The chart below (click to enlarge) is an illustration of how good of a job the management team for Cerner Corporation has done at creating wealth for its shareholders.

The market rewards companies that follow a wealth creation strategy of growing a profitable business. In other words, the market favors companies that generate positive Economic Margins (true measure of economic profitability) and are capable of expanding their business.

The example we are providing today Cerner Corporation (NASDAQ: CERN) has maintained positive Economic Margins for over the last 10 years, and has consistently grown their asset base during the same time period. Looking at the Cumulative Return vs. S&P500 chart in the Wealth Creation Report, it is not surprising that Cerner Corporation (has outperformed the market over this time period.

Next week we will provide a few reasons in more detail why we like Cerner Corp. and why we believe that their shares are currently undervalued.

Source: Cerner Corporation: A Consistent Wealth Creator