CEOs Predicting Growth Rates for Their Companies

CEOs are encouraged to predict growth rates for their companies by analysts and investor relations departments. Too often these predictions lead to trouble, as only a very small percentage of large businesses can maintain 15% per-share earnings growth over the long term. Investors should be leery of companies run by CEOs who woo investors with fancy predictions. If company still doesn't expense options or dispense assumptions are fanciful, watch out.