Posted on March 7, 2013 | Investor Update
Is growth important to a rising stock price? My guess is that if I were to ask this to a random set of investors, the answer would absolutely be yes.
Growth makes a good story. Winners are preferred to losers and, when it comes to companies, winning is associated with growth. A company that is growing profits, or is expected to achieve strong earnings growth in the future, is often a company that attracts attention. Growth can put a stock in the news and it can attract investors. Growth can even lead to higher valuations.