>>Will the sun rise tomorrow? Based on past performance, I'd be willing to bet that it will.<<
so, now the market making money is as sure as the sun rising ;-) the mania runs deeper than even i thought.
>>If company RPM's management has performed admirably for a long time, and the
company has just completed its 47th consecutive year of record sales and record
earnings, will it remain profitable over the long term? Based on past performance,
I'd be willing to bet that it will.<<
the key to making money longer term is most definitely NOT remaining profitable but increasing profits and its rate of growth relative to where you bought it. your above scenario could easily cost somebody 80-90% of their investment EVEN IF THE COMPANY "REMAINS PROFITABLE."
btw, please tell us all what company has had record eps performance each and every year for 47 consecutive years...
>>Obviously, I can not guarantee that the sun will rise tomorrow, that it will be cold
next winter in the upper midwest, that company ABC will not suddenly begin
growing at 50% per year, or that company RPM will remain profitable over the long
term. However, I can make educated guesses based on past performance.<<
this sentiment is why 6% growth companies trade at 30 pes (and will be 50 pes next year ;-) as we speak. |
