I'm confident in my own method of figuring out my rate of return. I look at the long term eps compounded growth rate, and make an evaluation as to whether or not the eps growth rate can be sustained long term. I don't think that anyone thinks that I doubt that PC growth will continue at a good clip for years to come. We can talk all you want about future growth but my time frame is very long. For example, how many PC users do you think that there will be in the year 2007? I've read that the number is expected to increase 15% a year, which will result in 809,111,547 users. Since I don't see CPQ losing market share, just if they maintain their market share, and using 11 million computers as the base number of annual sales, in ten years they'll be selling 44 million computers by then. This is a huge number, but the market is there. I'll pass on your recommended book...I don't think that there is anything out there that can beat the Oracle of Omaha's method of selecting stocks, and I try to emulate him.
E.H.F. |
