Excess Returns  cover image

Finding Great Growth Companies with David Rolfe

Excess Returns

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The Importance of Debt in Growth Companies

A growing dividend is also a signal to the marketplace of management's intention of the rate of future growth as they increase that dividend every year. We would prefer share buybacks if they can do that in a creative manner. How do you think about debt? Your third criteria was a high level of profitability without the use of excessive debt. You mentioned the fourth criteria is a strong management team and you mentioned the management has to be great capital allocation.

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