Finding Great Growth Companies with David Rolfe
Excess Returns
00:00
The Importance of Profitability
The key is profitability. If a service or product is truly dominant, and management can navigate those competitive waters and battles, that product or the company should be able to maintain high levels of profitability. That type of metric over a meaningful period of time is prima facie evidence of some type of significant competitive advantage. And we're ending in, to state it another way, profitability either high, high mediocre or low, is the mother's milk of future earnings growth.
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