Growth Stocks

High quality growth stocks show long stable past growth, have an identifiable moat and good decent management. This all should guarantee a predictable further growth what is necessary to calculate fair share price.

Typically I would expect to buy and hold growth stocks for a long period of time (> 5 years).

To qualify as a growth stock, a stock must match the following criteria:

• I must be able to understand the business (see “Good Stocks Cheap” book for exact items)
• The company must show a stable consequent growth in the past ~10 years (see Big Five from “Rule One Investing” book). The company must show about 10% annual growth or more.
• Long Term Debt / Equity <= 50%
• Must pass the strategic analysis (see “Good Stocks Cheap” book)
• Pass The Forces Analysis
• Have identifiable Moat
• Have adequate management (see “Rule One Investor” book) and demonstrate shareholder friendliness (see “Good Stocks Cheap” book)