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Two types of growth: organic and acquisition

 

Two types of growth: organic and acquisition

In this week’s video insight Stuart discusses how the value of a company’s growth is determined and identifies two types of growth organic and acquisition. If one company is generating growth by investing in its own assets, it is likely to have a marginal return on capital that is greater than a company that is acquiring its growth by buying other businesses.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.

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