Not all growth is created equal
At Montgomery we focus heavily on a company’s prospects. This refers to the outlook for the company’s earnings growth. While a growing earnings stream is valuable, not all growth is equal. In this video Stuart discusses two types of growth: organic and acquisition.
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Justin Carroll
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“While a growing earnings stream is valuable, not all growth is equal”.
Not only is not all growth equal, sometimes it is not the growth that was anticipated. And if you have already paid up for that anticipated growth in the here and now (which is to say, if you have paid in advance for what ends up being deferred) – watch out below! It will cost you money’s time value as well as the mark-to-market loss.
Cases in point: ISD and HSO.