Focused Compounding Ep 382. Franchise Value, The Secret to Geoff Gannon’s Investing, and Analyzing Airline Stocks
7 snips
Jan 27, 2023 AI Snips
Chapters
Transcript
Episode notes
Misjudging Growth
- Investors misjudge growth vs. value, struggling to identify true growth companies.
- Companies with high past growth may experience poor future performance, impacting valuations.
Normalizing Earnings
- Be cautious when using recent earnings for cyclical businesses like retailers or banks.
- Normalize earnings based on pre-COVID or multi-year averages for a clearer picture.
Reliable Growth
- Focus on the reliability of earnings-per-share growth, not just the source.
- Consider buybacks, dividends, and business expansion when evaluating growth.