Chapter 5
Large Growth: Muscular Money Makers
In This Chapter
Understanding what makes large large and growth growth
Sizing up the size factor in stock investing
Choosing the best options for your portfolio
Pick up a typical business magazine and look at the face adorning the cover. He’s Mr. CEO. Tough and ambitious and looking for acquisitions under every rock, his pedigree is University of Toronto, his wife is the former Miss Ontario, his salary (not to mention other perks) exceeds the gross national product of Peru, and his house has 14 bathrooms. The title of the cover story emblazoned across Mr. CEO’s chest suggests that buying stock in his company will make you rich. Without knowing anything more, you can assume that Mr. CEO heads a large growth company.
In other words, Mr. CEO’s company has a total market capitalization (the value of all its outstanding stock) of at least $5 billion, earnings have been growing, and growing fast, the company has a secure niche within its industry, and many people envision the Borg-like corporation eventually taking over the universe. Think CN Rail, Scotiabank, Suncor, and Barrick Gold. In the States, think General Electric, IBM, and — even ...
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