Vol. 3, No. 14 — Growing pains
Growth doesn’t always create value; Stocks have started to look expensive; Bank lending has held up despite rate hikes; Value in foodservice distribution
In this issue
Quote from Christopher Browne
Cartoon: Property scalpers
Growing pains
Cost of capital
Laughing all the way to the bank
Regions and sectors
Stock screen
Debt cycle monitor
Investment idea
Read time: 29 minutes
Quotation
“Buy stocks as you would groceries: when they’re on sale.”
— Christopher Browne
Cartoon: Property scalpers
Growing pains
Growth doesn’t always create value. Forgetting this can be costly.
•••
Growth at all costs has been the name of the game for many companies over the last few years. But capital costs have risen, and it has punished the growth-at-a-reasonable-price crowd. What strategy should companies and stockpickers follow? They should remember the nuanced rule of growth—it doesn't always create value. In fact, sometimes, it destroys value.