Over the past five years, Marx and Spencer (LSE: MKS) Actions have more than we will triple value. So far, 2025 has been much less impressive: the price of Marx and Spencer shares has dropped by 11%.

Should I buy a participation in my portfolio? My answer is “no – for more reasons.

Having a sense of business

I am surprised that he has done so well in the last five years, to be straightforward.

When I enter the Marx and Spencer store, I see a lot of things that make me question how it is in contact with what his buyer wants.

But business results in the last few years have been generally more impressive than I expected. This makes Marx think much more in contact with clients than me.

This itself means that I carefully put the money into the action, because it suggests that the deep understanding of what Marx and the base of Spencer’s clients can go beyond what my “circle of competence”, as Warren Buffett describes. This may make it tough to assess the seller’s prospects.

Leadership provided, but not always

Buffett also says that he likes to invest in a business that can be run by idiots because they can be sooner or later.

I think Marx and Spencer management are far from idiotic – they have done a great job in the last few years. For example, last year revenues increased by 6%, and profit before tax and adjustment of items increased by 22%.

Adjusting the elements, however, are real elements on the profit and loss account – and the performance was less impressive when they turn them on. The profit after taxation dropped by 31%. To sum up, I am impressed by the enhance in sales of the company on a tough market.

This year, the company had a nasty cyber attack, in common with other huge retail sellers. What disturbed me as a potential investor was how much time it took to recover even the basic products on the shelves.

Undoubtedly, the management had a full coping with this episode, but the view of the empty shelf on the shelf questioned me whether the company was run in a sufficiently resistant way.

I do not consider the valuation attractive

This is a constant risk, although the same also applies to many other companies.

But another factor that allows me to invest in Marx, and Spencer is the current price of the action.

The iconic brand still has legions of committed customers, its results in recent years have shown that she may not keep up with the times, and I think her business is becoming more and more well prepared for the digital era (partly thanks to her connection with the connection Ocado).

But is it worth the earnings 25 times? I do not think that – and 1% dividend performance almost does not make it more attractive to me.

The price of Marx and Spencer shares was brilliant five years venerable, but I think it is overcrowded and I don’t plan to invest.