The power and importance of compounded earnings growth in the investing process.

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 power of compounded growth and the 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: Clorox Co (CLX) and Stryker Corp (SYK). Take a look at the evidence he shows in evaluating the importance of compounded growth and valuation.

The author manages portfolios owning: SYK.

http://www.themarketsupchuck.com/blogs/?p=265

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