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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Bob Rudd who wrote (8063)	8/28/1999 12:24:00 PM
From: James Clarke	Read Replies (2) \| Respond to of 78822

There was a great study of growth persistence out of Sanford Bernstein (or maybe it was Merrill) recently. I'll see if I can dig it up and post his numbers. They were pretty shocking.

To: Bob Rudd who wrote (8063)	8/29/1999 9:46:00 AM
From: Freedom Fighter	Read Replies (1) \| Respond to of 78822

Bob, Sorry to say I haven't seen or done any research like that, but I think it would be quite revealing. I think the key is to find companies that earn a high return on capital because they have some sort of business edge, superior model or other advantage that is sustainable. They must also be in a business that does not change much. If a company possesses those qualities and the market for potential growth is large enough you might have a company that can grow rapidly for a very long time. They are few and far between and not very easy to identify. I think that's why there are so many bloodbaths when people pay high prices for growth. Wayne