Longevity of High Growth Stocks!
So many Indian stocks are growing at a rate mushc faster than the Indian economy – in fact many times. The projections for these stocks growth rate are fantastic at times.. going into many decades. But, can a company – high growth one – keep growing at a multiple to the economy itself for ever?
NO!
Because otherwise it will become the economy itself!
So, the brakes to a company’s growth is dependent on the growth of the economy itself. THAT is the reason why all the companies in an economy – who want high growth for a long time – should worry about the growth of the economy as well… because it is not the competition that will slow them down.. but the VERY environment they perform in!!
The bar to successful companies, therefore, is set by their own actions!
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