2min chapter

We Study Billionaires - The Investor’s Podcast Network cover image

RWH016: The Best Of The Best w/ François Rochon

We Study Billionaires - The Investor’s Podcast Network

CHAPTER

The Growth Rate of a Stock Can Be a Great Investment

If I'm right on the growth rate of course it can be a investment. The danger is that if you overpay a little bit you kind of discounted a few years in advance the future growth. But like you said I made the mistake of not purchasing great companies because I wanted that P ratio to be lowered, which was wrong. If you can find a company that can grow by 20% a year and you lose a little bit on the P ratio after 10 years you'll probably do okay. So it's to find the right balance of you know keeping the margin of safety principle in line but at the same time always trying to see that perhaps if you pay a little higher than you'd

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