Chapter 17. Growth Investing: The Process

COSC: Concentrate On the Strongest Candidates

Every generation has its success stories: the Microsofts, Intels, and Wal-Marts that seemingly came out of nowhere to become mammoth enterprises and make their shareholders rich.

Finding the next Microsoft is the Holy Grail for growth investors. But you don’t have to find the next Microsoft to be successful at growth investing.

In the end, share prices follow earnings. If you can find a company growing earnings, and hence share price, 15 percent annually, you’ll turn $1,000 into more than $4,000 in 10 years. Find a stock growing 20 percent annually and you’ll grow $1,000 into more than $6,000; 25 percent annual growth turns $1,000 into more than $9,000 in ...

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