DYW, I suspect that with hindsight you can pick such stocks. The problem is picking them in advance. And if you bet everything on one stock, as Chaz seems to be suggesting, then what happens if your hot grower comes a cropper and falls by 50% because, say, they miss their earning's estimate? My argument would be the same, of course, even if you tried to pick a flock of 50% growers.
Most professionals would be happy as pie if they can grow their portfolios at a rate of 15-20% a year, year over year. Only the best of the professionals have come anywhere near that for a sustained period of time.
Oh, and one other thing. Chaz seems to forget that every once in a while we do get bear markets . Er, Chaz, what would a stock market decline of 30% every couple of years do to your estimates? |
