I define high growth stocks as companies growing earnings at 15% or faster. Shareholder returns will closely correlate to the rate of change of earnings growth a company achieves as long as valuation is in line. If valuation is high, returns will be lower than growth. If valuation is low, returns will be higher than growth.
Today’s video looks at Google, one of the most powerful growth stocks of modern times, from the perspective of valuation and earnings growth.
Best when viewed in full youtube screen.
Disclosure: Author Manages Portfolios Long GOOG
The primary message of today’s blog was to think your way through the investment process. Don’t just take things at face value. A little analysis can do wonders for your investing strategy.
The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.