Reflections on Investing · Episode 29
Expectations And Valuations
Growth in earnings doesn’t necessarily equate to growth in a stock’s price. A company’s growth must meet or exceed the expectations of its investors to increase the stock price. When they fall short
Growth in earnings doesn’t necessarily equate to growth in a stock’s price. A company’s growth must meet or exceed the expectations of its investors to increase the stock price. When they fall short of these lofty expectations the results generally spell trouble for shareholders.