Discovering True Growth Gems
One of my experiments over the years has been to search for companies that I have dubbed true growth stocks. These are companies that have grown sales and earnings better than 15% over the last decade. I further cull the herd by refining the search to include only those companies where management has successfully reinvested profits in the company, and the net worth of the enterprise has also grown by at least 15% over that time period.
This narrows the focus to just those companies whose management has done a great job of growing the business and not wasting earnings on bad acquisitions, poor products or overpriced share buybacks. In keeping with the Jacobian tradition (invert, always invert) of always looking at the other side, I have searched for management teams that have been able to grow the company in a decade when sales and profit growth was difficult to achieve....580 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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