Select Stocks with 25% to 50% Annual Growth Rates

Owning common stock is just the same as being a part owner in a business. And who wants to own part of an establishment showing no growth? The annual compounded growth rate of earnings in the superior firms you hand pick for purchasing stock in should be from 25% to 50%, or even 100% or more, per year over the last 4 or 5 years.

Between 1970 and 1982, the average annual compounded earnings growth rate of all outstanding performing stocks at their early emerging stage was 24%. The median, or most common, growth rate was 21% per year, and three out of four of the prominent winners revealed at least some positive annual growth rate over the five years preceding the giant increase in the value of the stock. One out of four were turnarounds.

A typical successful yearly earnings per share growth progression for a company's latest five-year period might look something like $.70, $1.15, $1.85, $2.80, $4.

The earnings estimate for the next year should also be up a healthy percentage; the greater the percentage, the better. However, remember estimates are opinions. Opinions may be wrong whereas actual reported earnings are facts that are ordinarily more dependable.