Reflections on Investing: Expectations and Valuations

Growth in earnings doesn't necessarily equate to growth in stock price. A company's growth must meet or exceed the expectations of its investors to increase the stock price. When they fall short of expectations, the results generally spell trouble.


Growth in earnings doesn't necessarily equate to growth in a stock's price. A company's growth must meet or exceed the expectations of its investors to increase the stock price. When they fall short of these lofty expectations the results generally spell trouble for shareholders.
 

Video Length: 00:08:47

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