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Investing in growth stocks normally requires a growth premium to be paid.

The growth premium reflects the above average expected growth rates in the company’s earnings. So you better be sure that the company earnings continue to grow over time.

There are a few areas of quantitive analysis to help assess future growth prospects. 

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Squeezing the Lemon

On 03/06/2010, in Economics, Entrepreneurship, by Jordan Wilson

Apologies to anyone expecting a post about my favourite beverage, the Caipirinha.

Yes, that would be a good post. But it would require limes, not lemons.

Rather, this follows on from How to Become a Billionaire. In that post, I mentioned how “squeezing the lemon” could reduce costs, thereby improving profitability.

Now I want to provide a simple example of the relationship between cost, revenue, and profitability.

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