Sunday, 12 June 2016

Is Earnings Growth a Strategy?

Warren Buffett simple strategy is one that speaks to earnings growth and his primary objective is to grow earnings.

He wants to know if after he puts in his money in a company at what point will he be getting it back, how certain he is of getting it back and how often will he be getting his money from the company.

It is the growth prospect of the company that is the most important thing and not the cigar butts businesses that no longer poses an appealing option for the troves of cash he currently generates which is something in the region of a $100 million a week.

So earnings growth is critical a strategy to explore given that he wants time to read, study and deliberate his next purchase.

Focus InSight: Earnings growth is a strategy.