Heyer Capital, LLC

investment management and timely advice from a local CPA (Fox Valley, Wisc.)

earnings growth has your back

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If I could give you one investing lesson to take with you the rest of your life…well, there’s really about 20 of them… but if I had to give you just one (today) it would be to remember that good things happen to stocks with outstanding earnings.

They get buy out bids, they get the expanding P/E multiples, their earnings stream makes them less dependent on expensive debt or other capital financing. It’s good to make money faster and faster.

Sounds wildly simplistic right? But you’d be surprised how many people like to invest in stocks because the name sounds familiar, or because they themselves buy that company’s product. Earnings, schmernings.

Keep the wind at your back and in your sails. Strong, solid earnings growth is that solar wind.

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Written by heyercapital

May 16, 2007 at 2:12 pm

Posted in charting

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