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

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Quotation

“Buy stocks as you would groceries: when they’re on sale.”

— Christopher Browne

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Cartoon: Property scalpers

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Growing pains

Growth doesn’t always create value. Forgetting this can be costly.

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“Growing pain” by DALL•E

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.