How to: evaluation of growth and value.

HISTORICAL HIGHLIGHTS

Since we don’t typically post on the weekends, we use this time as an opportunity to re-focus on previous noteworthy posts.

The link to the previous post listed below focuses on the two main keys in determining rates of return, which are: (1)valuation and (2)earnings growth. Chuck individually discusses the growth rates and valuations of the following equity(stock) investments: WGL Holdings (WGL), 3M Co. (MMM), HJ Heinz Co. (HNZ), Kimberly-Clark Corp (KMB), Ford Motor Co. (F), Oracle Corp. (ORCL), Cognizant Tech Solutions (CTSH), Research in Motion (RIMM), and McDonald’s Corp. (MCD). Take a look at the evidence he shows in determining the expected rates of return when investing in various stocks with different P/E ratios and different earnings growth rates.

The author manages portfolios owning: ORCL and CTSH.

http://www.themarketsupchuck.com/blogs/?p=176

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